Clapper, Patti, Schweizer and Mason

Federal-Mogul Corp. is an auto parts maker.  Many of the parts contained asbestos.  Asbestos lawyers filed thousands of cases against Federal- Mogul alleging that the asbestos had caused mesothelioma and lung cancer. The company filed for Chapter 11 protection, and has been in Chapter 11 for more than six years.

Federal-Mogul wants to end its stay in bankruptcy by Dec. 31 to preserve favorable pricing on $3.5 billion worth of exit financing.  However, the reorganization plan could not be finalized because of numerous objections that had been filed by various entities. Most of these objections had been resolved. PepsiAmericas was the only entity still objecting to part “B” of Federal-Mogul's Chapter 11 plan. PepsiAmericas recently withdrew its objection.

U.S. Bankruptcy Judge Judith Fitzgerald said she is likely to recommend that the "B" version of Federal-Mogul's Chapter 11 plan be confirmed. Objections remain to other parts of the plan. However, settlements are pending that could end all opposition to Federal-Mogul's Chapter 11 reorganization plan.


 

Jack K Clapper
Clapper, Patti, Schweizer & Mason
415-332-4262
800-440-4262
jkc@clapperlaw.com