October 19th, 2005
Following a hearing at the bankruptcy court earlier this week, it looks as though the Swiss engineering company ABB is nearing a settlement of $1.4 billion to settle asbestos related claims in the United States. A court in Pittsburgh has asked the company to submit a proposed confirmation order in the next couple of weeks. The case will then move to the US District Court.
The engineering company used to make boilers that were lined with the deadly and carcinogenic substance, asbestos. Zuercher Kantonalbank analyst Mark Diethelm stated: "It's a further step to the final resolution of its asbestos problems."
The company did submit a proposal for settlement of asbestos claims last year, but this was thrown out by a US court. However, the firm will now resubmit a new plan, and officials state the they are eager to get the settlement proceedings underway as soon as possible in order to attempt a recovery without the added worry of asbestos lawsuits and settlements.
ABB has had to lose thousands of staff members and has cut some if its subsidiaries over the past three years after it reached the point of collapse due to huge debts.
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