RPM International Inc. has reported that the U.S. Bankruptcy Court for the District of Delaware has issued an opinion estimating the current and future asbestos claims associated with Bondex International, Inc. and Specialty Products Holding Corp. at approximately $1.17 billion. The estimation hearing represents one step in the legal process in helping to determine the amount of potential funding for a 524(g) asbestos trust. The debtors, Bondex and SPHC, firmly believe that the opinion substantially overstates the amount of their liability and is not supported by the facts or the law. The debtors intend to appeal. It is anticipated that the appeal process could take an additional two to three years.
On May 31, 2010, Bondex and its parent, SPHC, filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware. Through the Chapter 11 proceedings, the filing entities intend ultimately to establish a trust in accordance with Section 524(g) of the Bankruptcy Code and seek the imposition of a channeling injunction that will direct all future Bondex-related and SPHC-related claims to the trust. It is anticipated that the trust will compensate claims at appropriate values established by the trust documents and approved by the bankruptcy court.
