Health Concerns Close Down the Asbestos Industry

During the mid 1970s the government and the courts finally recognized what had been evident to the nation’s doctors and hundreds of thousands of American citizens: exposure to asbestos is a serious health hazard with long-term consequences. Asbestos products were taken off the market for the most part; product liability claims and the ensuing court decisions drove more than seventy companies into Chapter 11 bankruptcy filings.

Asbestos exposure can result in the onset of many respiratory problems, the worst of which is mesothelioma cancer. This lethal disease develops from the inhalation of asbestos fibers, which are contained in the dust or debris anytime asbestos is disturbed, moved or used. So many people have become seriously ill from asbestos exposure that the liability exposure sent some major American corporations into bankruptcy court.

When the manufacture or use of asbestos products was recognized as a health hazard thousands of America’s largest industrial concerns were subject to liability actions. Power plants, steel mills, oil refineries and petrochemical plants, auto plants and just about any manufacturer that used heat in the production process all had asbestos in use within their facilities. For the most part they have weathered the liability responsibility that has become a hallmark of asbestos usage, but for the companies that mined the mineral and produced products with asbestos components bankruptcy became a necessary shelter.

Chapter 11 Bankruptcy Protection

The companies listed below all sought protection in the bankruptcy courts, beginning in the 1980s. Over the years a formula for asbestos bankruptcy settlements has emerged. Many of the asbestos companies have sought to find a way to limit their liability over the lawsuits filed by victims of asbestosis and mesothelioma cancer. The purpose of a Chapter 11 filing for the asbestos bankruptcy companies is to allow the corporation to reorganize its structure and to find a way to handle the thousands of liability claims.

The courts have allowed the companies to set up asbestos trust funds, accounts that contain large amounts of cash put aside for the purpose of compensating legitimate claims from people whose health has been impacted by asbestos. The courts then limit the extent of liability for the bankrupt company to the amount contained in the trust fund, and the company is free to emerge from bankruptcy.

Legal Assistance for Asbestos Bankruptcy Trust Claims

If you have an asbestos related health problem and want an attorney that has experience with the asbestos bankruptcy funds give us a call at or fill out the brief form at the top of the page. Tell us about your experiences with asbestos exposure and we’ll take it from there.