CHARLOTTE, N.C.—Garlock Sealing Technologies L.L.C. has put together an amended reorganization plan that is aimed at resolving all asbestos claims against the company.
The gasket and seal maker will file the plan in the U.S. Bankruptcy Court for the Western District of North Carolina and incorporate the court's ruling in January that $125 million is sufficient to satisfy the company's aggregate liability for present and future mesothelioma claims.
A subsidiary of EnPro Industries Inc., GST's amended plan provides $275 million for final and permanent resolution of unsettled current and future asbestos claims against the firm.
GST will set up a $245 million Settlement Facility to settle claims for cash payments on criteria outlined in the plan and a $30 million Litigation Facility that defends suits by claimants who choose to litigate, the firm said.
In addition to paying those who decide to settle claims, the Settlement Facility will contribute funds to defend claims subject to litigation up to the settlement amount a claimant would qualify for under the facility's resolution procedures, GST said. The Litigation Facility would pay all costs in excess of that amount.