October 17, 2023
October 17, 2023
Earlier this summer we reported that the United States Bankruptcy Court for the District of Delaware had entered an order approving an interim pro-rata distribution of $15 million to unsecured creditors by Charles Forman, the Chapter 7 Trustee for National Service Industries, Inc. On October 2, 2023, the Court approved an additional, supplemental pro-rata distribution of $8 million to unsecured creditors. This supplemental distribution was made possible primarily because of an additional successful insurance settlement of $10 million also approved by the Court on October 2, 2023. This most recent settlement brings the aggregate insurance recoveries in this case to more than $33 million. The Trustee will continue to pursue resolution of remaining, unresolved insurance assets.
As of the petition date, NSI was subject to thousands of personal injury or wrongful death claims arising from the distribution of asbestos‐containing insulation by a previously divested business of NSI dating back to the 1960s. NSI is the policyholder of numerous insurance policies that have covered and should continue to cover losses related to the asbestos claims. During the bankruptcy case, approximately 20,000 asbestos claims were asserted against NSI. After a claim review process developed by the Trustee and approved by the court, approximately 4,000 of these claims were approved.
“I continue to be extremely proud of the results achieved by the Trustee and his team” said Jason Rubinstein, Gilbert Partner and Special Insurance Counsel to the Trustee.
The Trustee continues to anticipate closing the bankruptcy case in 2024.
Gilbert LLP is a Washington-based law firm specializing in litigation and strategic risk management, insurance recovery and complex dispute resolution.