U.S. appeals court requires more review of ABB asbestos case

Zurich, Switzerland—ABB reports that the U.S. Third Circuit Court of Appeals has ruled that ABB's Chapter 11 reorganization plan for its U.S. subsidiary, Combustion Engineering (CE), needs to be reviewed again by the U.S. District Court.

12/15/2004


Zurich, Switzerland— ABB reports that the U.S. Third Circuit Court of Appeals has ruled that ABB's Chapter 11 reorganization plan for its U.S. subsidiary, Combustion Engineering (CE), needs to be reviewed again by the U.S. District Court.

In the reorganization plan announced in January 2003, ABB says offered a $1.2 billion trust fund for claims against CE. This fund included the CE's assets valued at $812 million, about 30 million ABB shares, and $350 million in cash contributions. The plan reportedly was accepted by an overwhelming majority of claimants, and approved by the applicable bankruptcy and district courts.

ABB says it's considering its options following of this latest ruling, and expects to quickly resolve the latest issues raised by the appeals court. In the meantime, CE remains in Chapter 11, and it and the ABB group remain protected from asbestos litigation by the bankruptcy court's injunction.

The Third Circuit Court of Appeals found that it was not appropriate to include Lummus Global and Basic Ltd. in CE's reorganization plan. ABB states it will examine other mechanisms to deal with what it reports is insignificant asbestos exposure of these two companies.

'Given the fact that both the bankruptcy and district courts have approved the Combustion Engineering Plan of Reorganization, we are naturally surprised and disappointed at today's decision,' says Jurgen Dormann ABB's chairman and CEO. 'However, we remain confident that we can resolve Combustion Engineering's asbestos liability within a Plan of Reorganization com-patible with the Third Circuit's decision within a relatively short time frame and without significant additional cost.'

Control Engineering Daily News Desk
Jim Montague, news editor
jmontague@reedbusiness.com





No comments
The Engineers' Choice Awards highlight some of the best new control, instrumentation and automation products as chosen by...
The System Integrator Giants program lists the top 100 system integrators among companies listed in CFE Media's Global System Integrator Database.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
This eGuide illustrates solutions, applications and benefits of machine vision systems.
Learn how to increase device reliability in harsh environments and decrease unplanned system downtime.
This eGuide contains a series of articles and videos that considers theoretical and practical; immediate needs and a look into the future.
Sensor-to-cloud interoperability; PID and digital control efficiency; Alarm management system design; Automotive industry advances
Make Big Data and Industrial Internet of Things work for you, 2017 Engineers' Choice Finalists, Avoid control design pitfalls, Managing IIoT processes
Engineering Leaders Under 40; System integration improving packaging operation; Process sensing; PID velocity; Cybersecurity and functional safety
This article collection contains several articles on the Industrial Internet of Things (IIoT) and how it is transforming manufacturing.

Find and connect with the most suitable service provider for your unique application. Start searching the Global System Integrator Database Now!

SCADA at the junction, Managing risk through maintenance, Moving at the speed of data
Flexible offshore fire protection; Big Data's impact on operations; Bridging the skills gap; Identifying security risks
The digital oilfield: Utilizing Big Data can yield big savings; Virtualization a real solution; Tracking SIS performance
click me