Asbestos lawsuits have driven an Illinois boiler manufacturer into bankruptcy for the second time in less than 30 years, reports Legal Newsline.
Now, the company is “looking to establish a trust for the asbestos claims that have crippled it, including the 3,400 active cases it is currently facing.”
Oakfabco, Inc., formerly known as Kewanee Boiler Corporation, filed a Chapter 11 case in the U.S. Bankruptcy Court for the Northern District of Illinois, Eastern Division. The company also went through bankruptcy in the 1980s, but the company now has no employees and its “sole remaining asset is its insurance.” It is looking to set up a trust to pay current claims.
The company estimates there about 3,400 active asbestos claims, and more than 30,000 inactive asbestos claims outstanding against it. Formerly a division of American Standard, the company was sold in 1970, and hasn’t manufactured boilers since its 1988 bankruptcy agreement.
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