Bankruptcy To Resolve Bondex Asbestos Liability

Bankruptcy To Resolve Bondex Asbestos Liability

WILMINGTON, Del. - (Mealey's) Bondex International Inc. and Specialty Products Holding Corp. on May 31 filed separate voluntary petitions for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware and moved to have the cases jointly administered; the cases are geared at resolving asbestos liability claims associated with Bondex (In re Bondex International Inc., No. 10-11779, In re Specialty Products Holding Corp., No. 10-11780. D. Del. Bkcy.).

Bondex and Specialty Products are two non-operating subsidiaries of RPM International Inc.  Specialty Products is the holding company for Bondex.  Specialty Products, through its subsidiaries, is a manufacturer, distributor and seller of various specialty chemical product lines, including exterior insulating and finish systems, powder coating, fluorescent colorants and pigments, cleaning and protection products, fuel additives, wood treatments and coatings and sealants.

Both companies face asbestos-related bodily injury lawsuits in various state courts, with the plaintiffs seeking unspecified damages for asbestos-related diseases based on alleged exposure to asbestos-containing products they previously manufactured.

Both companies list between 10,000 and 25,000 creditors, between $100 million to $500 million in assets and estimated liabilities between $100 million and $500 million.

The companies will operate as debtors in possession and will be seeking to establish a trust pursuant to Section 524(g) of the U.S. Bankruptcy Code.

The companies filed a separate motion seeking joint administration of their cases, saying joint administration will avoid the need for duplicative notices, motions and applications.

RPM International and its operating subsidiaries are not part of the filing and will not be affected by it, according to a release issued by the company. 

[Editor's Note:  Full coverage will be in the June issue of Mealey's Asbestos Bankruptcy Report.  In the meantime, the petitions for bankruptcy and motion for joint administration are available at www.mealeysonline.com or by calling the Customer Support Department at 1-800-833-9844.  Bondex's petition.  Document #48-100609-021X.  Specialty Holding's petition.  Document #48-100609-022X.  Motion for joint administration.  Document #48-100609-023M.  For all of your legal news needs, please visit www.lexisnexis.com/mealeys.]

Download the documents now:

Mealeysonline.com - Document #48-100609-021X

Mealeysonline.com - Document #48-100609-022X

Mealeysonline.com - Document #48-100609-023M

For more information, e-mail editor Cheryl Keely at cheryl.keely@lexisnexis.com.