On May 6, U.S. Bankruptcy Judge Judith K. Fitzgerald, sitting in the U.S. Bankruptcy Court for the District of Delaware, confirmed ACandS’s reorganization plan. The confirmation order was affirmed by U.S. Judge Joseph J. Farnan Jr. of the District of Delaware.

Related Resource Mealey's Asbestos Bankruptcy Report The Report provides in-depth news and analysis of asbestos bankruptcy law and the progress of bankrupt asbestos companies through the ever-evolving Chapter 11 process. Topics include insurance issues, impacts on settlements, how asbestos bankruptcies are affecting the landscape of the litigation and which companies may be forced to file for Chapter 11 protection in the future. Published monthly.

ACandS has operated since 1958 as an insulation contracting company. It was named as one of many co-defendants in hundreds of thousands of lawsuits filed by people seeking damages for asbestos-related personal injuries allegedly caused as a result of its former business operations. On Sept. 16, 2002, ACandS filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code. As of its petition date, more than 300,000 asbestos-related claims were pending against it or had been settled but not paid.

On Nov. 20, ACandS filed a plan and disclosure statement in the Bankruptcy Court. On Jan. 7, the Bankruptcy Court approved the disclosure statement.

Bankruptcy Judge Fitzgerald said the key feature of the plan is the establishment of the trust into which all present and future asbestos claims against ACandS will be channeled. The plan designated various classes of claims and interests, including priority claims, nonasbestos secured claims, various categories of asbestos personal injury claims, asbestos unsecured claims, general unsecured claims and nonasbestos unsecured insured litigation claims.

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