Successful Global Resolution in Mass Tort Asbestos Bankruptcy

Gilbert LLP was engaged to represent an asbestos claimants’ committee in a Chapter 11 bankruptcy to maximize the value of settlements negotiated pre-bankruptcy by the Debtor and two of its insurance companies, the proceeds of which would ultimately inure to the benefit of the committee’s claimants.  Prior to filing for bankruptcy, the Debtor had reached these settlements without input from any third-party.  After filing for bankruptcy, we advised the committee regarding the reasonableness of the respective settlements and, in conjunction with the committee’s bankruptcy counsel, engaged the respective insurers and Debtor to increase the aggregate value of the settlements.  Following extensive negotiations, the Debtor and its insurers agreed to increase the aggregate value of the settlements, which were approved by the bankruptcy court, providing greater relief for injured claimants.