RPM International Inc. (RPM), the maker of
Rust-Oleum and other specialty paints, agreed to pay $797.5
million to settle asbestos-related claims faced by its bankrupt
Bondex and Specialty Products units, less than the $1.17 billion
a judge said they may have owed.
The money will be paid over four years into a trust to
benefit personal-injury claimants, the Medina, Ohio-based
holding company said today in a statement. Related documents
weren’t immediately posted with U.S. Bankruptcy Court in
Wilmington, Delaware.
Companies used asbestos in insulation and fireproofing
materials. It can reach deep into a victim’s lungs and may cause
cancer and other diseases. Bankrupt companies are able to win
immunity from future asbestos lawsuits by setting up trusts to
cover asbestos-related costs.
The settlement would be part of a reorganization plan for
Bondex and Specialty Products. The settlement and the plan must
be approved by the federal judge overseeing the bankruptcy.
The units sought court protection from creditors in May
2010, estimating asbestos liabilities of less than $400 million
at the time from more than 10,000 lawsuits. Three years later,
U.S. Bankruptcy Judge Judith K. Fitzgerald said claims from
current and future victims of asbestos poisoning may reach $1.17
billion.
“We have been able to reach a settlement on acceptable
terms,” Frank Sullivan, RPM’s chairman and chief executive
officer, said in the statement.
Natalie Ramsey, an attorney for asbestos victims, confirmed
that they had reached an agreement in principle with the
company.
The bankruptcy case is In re Specialty Products Holdings
Corp., 10-bk-11780, U.S. Bankruptcy Court, District of Delaware
(Wilmington).
To contact the reporters on this story:
Phil Milford in Wilmington, Delaware at
pmilford@bloomberg.net;
Steven Church in Wilmington, Delaware at
schurch3@bloomberg.net
To contact the editors responsible for this story:
Andrew Dunn at
adunn8@bloomberg.net;
Michael Hytha at
mhytha@bloomberg.net
Joe Schneider
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Rust-Oleum Maker to Pay $797.5 Million to Asbestos Trust