ZURICH, Switzerland — ABB and its U.S. subsidiary Combustion Engineering (CE) announced that they have agreed on a pre-packaged bankruptcy plan for CE with representatives of asbestos plaintiffs, which the company says is a significant milestone in the process to resolve CE’s asbestos liability.
The agreement in principle on a pre-pack asbestos bankruptcy plan for CE was reached with the proposed futures representative, David Austern, as well as with attorneys who ABB and CE expect to act on behalf of a sufficient number of current claimants to approve the plan. A trust, set up under the plan, will handle claims filed after a pre-packed Chapter 11 reorganization has been approved in court.