December 20th, 2004

An Australian asbestos trust fund that was set to go into liquidation has been reprieved following the offer of a cash injection from James Hardie Industries. The Medical Research and Compensation Fund (MRCF) was in the process of finding a liquidator because the fund was unable to operate beyond March,

However, James Hardie has offered an injection of $88 million, which means that the trust fund can now operate until January before having to go back to court for another decision. The current court hearing has now been adjourned following the surprise, no-strings offer from James Hardie, the manufacturing giant that has dominated the asbestos news lately due to its inability to pay its own compensation claims.

Apparently James Hardie had made offers of cash to the foundation in the past, but this had always been based on the foundation waving rights to sue Hardie for unpaid compensation to victims, hence the offers had always been refused. However, this is allegedly a no-strings offer of cash assistance, which the foundation has now accepted. "We are able to continue to pay claims which was very critical to us," said MRCF managing director, Dennis Cooper.

Although this cash offer has given the foundation a new lease of life for a short while, officials are desperately trying to find ways to keep the funding of the foundation going beyond the early part of next year.