Mesothelioma Trust Fund
When a company is unable to pay liabilities related to asbestos exposure, it may file for Chapter 11 bankruptcy protection. Companies that successfully file are protected from lawsuits.
Asbestos defendants approved for bankruptcy reorganization under section 524(g) of the U.S. Bankruptcy Code must fund these trusts with enough money to pay current and future asbestos claims.
Companies establish the trusts, but trustees manage them and decide the amount of compensation paid to claimants. In total, all asbestos bankruptcy trusts hold more than $37 billion. Many of these have paid claimants about $18 billion since the late '80s.
 |
| Mesothelioma Trust Fund |
When a company is unable to pay liabilities related to asbestos exposure, it may file for Chapter 11 bankruptcy protection. Companies that successfully file are protected from lawsuits.
Asbestos defendants approved for bankruptcy reorganization under section 524(g) of the U.S. Bankruptcy Code must fund these trusts with enough money to pay current and future asbestos claims.
Companies establish the trusts, but trustees manage them and decide the amount of compensation paid to claimants. In total, all asbestos bankruptcy trusts hold more than $37 billion. Many of these have paid claimants about $18 billion since the late '80s.