CHARLOTTE, N.C.—EnPro Industries Inc. and subsidiary Garlock Sealing Technologies have reached agreement, which includes a revised plan of reorganization, with the court appointed legal representative of future asbestos claimants.
If the reorganization plan is approved by the bankruptcy court and implemented, it will provide the expenditures needed to resolve all current and future asbestos claims against GST and subsidiaries Garrison Litigation and Anchor Packing, EnPro said.
It said the court appointed representative has agreed to support, recommend and vote in favor of the amended plan filed by GST, which provides payments to all claimants with a compensable disease and meaningful contact with GST's asbestos-containing products during the course of their working careers.
The company estimated that the current, after tax value of the revised plan is about $205 million. It expects an additional pre-tax amount of about $12 million to be paid to non-asbestos creditors and to claimants who prove they have a contractual right to payment of asbestos claims that were settled but unpaid when GST entered into bankruptcy in mid 2010.
It could take another 15 to 24 months to receive a confirmation on the plan from the court because of continued opposition from the committee representing asbestos claimants, EnPro said. And appeals could delay it even longer.