An asbestos bankruptcy trust was filed for in 1982 for Amatex Corporation, P.O. Box 228 Norristown PA 19404 under the name Amatex Asbestos Disease Trust Fund. Asbestos bankruptcy trusts are typically set up so that people who become victims of asbestos exposure can potentially obtain financial compensation for any illness incurred as a result of such exposure, including mesothelioma.
As the devastating effects of asbestos exposure became more widely known, people began hiring asbestos lawyers to sue the companies that were responsible for their illnesses, mesothelioma in particular. When the number of these lawsuits increased, it became necessary for the manufacturers and distributors of asbestos products to file for bankruptcy and reorganize their debts in a way that would allow them to pay off their liabilities. Part of this process involved setting up trusts to settle the claims.
For over 50 years, Amatex has been manufacturing fiberglass textile products. The company was one of the first to be affected by the use of asbestos. By the time it filed for protection under Chapter 11 in November of 1982, Amatex was dealing with over 9,000 asbestos-related lawsuits. Once the US Bankruptcy Court approved its restructuring, it founded the Amatex Asbestos Disease Trust Fund. The trust paid out over $11 million in settlements in the first ten years.