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Garlock files amended plan of reorganization

Rochester Business Journal
May 30, 2014

Garlock Sealing Technologies LLC filed late Thursday an amended plan of reorganization that provides $275 million for resolution of all unsettled current asbestos claims, as well as future asbestos claims against it.

Palmyra, Wayne County-based Garlock is a deconsolidated subsidiary of EnPro Industries Inc. The reorganization--filed in the U.S. Bankruptcy Court for the Western District of North Carolina--includes the court’s determination in January that $125 million is sufficient to satisfy Garlock’s aggregate liability for present and future mesothelioma claims.

In 2010, Garlock filed a voluntary petition to establish a trust to resolve all current and future asbestos claims under the U.S. Bankruptcy Code.

The plan calls for a $245 million settlement facility that would receive and settle claims for cash payments based on objective criteria outlined in the plan and a $30 million litigation facility that would defend suits by claimants who choose to litigate.

“(Garlock’s) amended plan of reorganization provides fair compensation to claimants and permanent resolution to all asbestos claims against (the company),” said Stephen Macadam, EnPro president and CEO, in a statement. “By providing funding greater than (Garlock’s) legal liability, the plan will facilitate the resolution of the vast majority of claims by settlement rather than litigation, saving litigation costs and ensuring that claimants are paid in full.”

The $245 million settlement facility will be funded by a $215 million lump-sum cash contribution from Garlock and a $30 million lump-sum cash contribution by Coltec Industries Inc., Garlock’s parent company and a wholly-owned subsidiary of EnPro Industries.

The plan document will be posted in the investor relations section of EnPro’s website, www.enproindustries.com.

 (c) 2014 Rochester Business Journal. To obtain permission to reprint this article, call 585-546-8303 or e-mail service@rbj.net.
 






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