March 10th, 2008
A group of claimants against an auto part manufacturer has filed an appeal, trying to halt the company from emerging from Chapter 11 bankruptcy. The claimants feel that not enough funds were set aside to settle asbestos lawsuits.
An auto parts manufacturer was expecting to emerge from Chapter 11 bankruptcy later this month, but now may have experienced a set back. Claimants against the company are protesting the confirmation of the bankruptcy, stating that the company has not set aside enough funds to settle the asbestos lawsuits against the manufacturer. The company set aside $240 million to pay the lawsuits existing against them, and agreed during the bankruptcy process that the Chapter 11 will not protect them from future lawsuits.
The trouble for the company is in the parts it makes. The manufacturer creates drive shafts and axles for automobiles; these parts contain asbestos that may have exposed thousands of people to a chance of contracting mesothelioma, asbestosis or other diseases affiliated with asbestos exposure. The company filed for bankruptcy in 2006, after a downward turn in the automotive industry. The claimants may not show signs of mesothelioma now, but the diagnosis of the disease can take years. The delayed discovery of the disease is making some claimants fearful that the fund will be gone by the time they become sick.
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