Agreement Reported on Control of Company
NEW YORK (AP) _ The Manville Corp. and its creditors have reached agreement on who should control the company when it emerges from reorganization under the federal bankruptcy laws, a Manville lawyer reported Thursday.
Attorney Michael Crames declined to give details, but he told federal Bankruptcy Judge Burton R. Lifland that the deal, reached this week, will be presented to the Manville board on Monday for approval.
Lifland agreed to put off until Tuesday a hearing on the proposed financial arrangements to bring the company out of bankruptcy proceedings. Crames told reporters later that no details of the agreement on control of the company will be released until after the board votes.
Disagreement on the question of who will have how much of a say in running the reorganized company threatened earlier this week to wreck the painstakingly negotiated compromise that would provide $2.5 billion for victims of asbestos exposure.
Manville, a Denver-based forest products company, once was the nation’s largest asbestos producer. It filed under Chapter 11 of the bankruptcy law in August 1982, asserting that it would inevitably collapse under the weight of billions of dollars of asbestos-related claims unless a procedure was worked out to satisfy them.
In a separate development on Thursday, Manville announced it has reached agreement with three insurance carriers, which will pay Manville $27.25 million plus interest from April 15.
The settlement, which must be approved by the court, was reached with Sun Insurance Office Ltd., which issued the policies, and its affiliates, Sun Alliance Insurance Co. and the London Assurance (the Sun Group).
Under terms of the settlement, the carriers will pay Manville after the reorganization plan is approved and implemented.
Richard B. Von Wald, corporate counsel for Manville, said in a statement issued from the firm’s Denver headquarters that, including the latest agreement, the company has reached settlements worth $500 million with 14 insurance carriers.
Manville is still discussing settlements with other insurers, Von Wald said. The company has lawsuits pending in San Francisco against 14 other insurance companies.