Dec 19, 2007 - Federal-Mogul to Return From Bankruptcy
Federal-Mogul Corp. makes a range of products including pistons, windshield wipers and Champion spark plugs. The company filed for Chapter 11 bankruptcy protection on Oct. 1, 2001. The Southfield Michigan based auto supplier has been in bankruptcy more than six years. It has settled hundreds of thousands of asbestos lawsuits stemming from asbestos-containing products manufactured by companies that Federal-Mogul had acquired. The lawsuits were brought on behalf of people with asbestos diseases, including mesothelioma and lung cancer, which were caused by exposure to asbestos.
Federal-Mogul said Tuesday that the company expects to emerge from bankruptcy on Dec. 27. It plans to allocate 50.1% of the stock in the reorganized company to pay asbestos claims. Financier Carl Icahn is expected to then buy 43% of Federal-Mogul from the asbestos trust, supplying the trust with cash to distribute and making Icahn the controlling shareholder.
Jack K Clapper
Clapper, Patti, Schweizer & Mason
415-332-4262
800-440-4262
jkc@clapperlaw.com
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