WOW! Warren Buffett took a giant hit today!
DJ USG Corp/Chp 11 -2: Asbestos Litigation 'Out Of Control'
25 Jun 08:59
CHICAGO (Dow Jones)--USG Corp. (USG) filed a voluntary petition for
reorganization under Chapter 11 of the Bankruptcy Code to manage the growing
asbestos litigation costs of its U.S. Gypsum Co. unit, and "to resolve asbestos
claims in a fair and equitable manner."
In a press release Monday, the materials and construction holding company
said its major domestic units also filed Chapter 11 petitions, including U.S.
Gypsum Co., USG Interiors Inc., and L&W Supply Corp., but the company's
international operations aren't effected by the bankruptcy filing.
"The asbestos litigation system is clearly out of control," USG Corp. said.
USG Corp. said its U.S. Gypsum unit has been named in more than 250,000
asbestos-related personal injury claims, and has paid more than $450 million
before insurance recoveries to manage and resolve asbestos-related litigation
since 1994.
The unit has received more than 22,000 new claims so far this year, and its
asbestos personal injury costs before insurance have risen to more than $160
million in 2000 from $30 million in 1997, and are expected to exceed $275
million in 2001, USG Corp. said.
(MORE) DOW JONES NEWS 06-25-01
08:59 AM |
