Settlement May End Federal-Mogul's Bankruptcy

Law360, New York (June 20, 2007, 12:00 AM EDT) -- A $10.5 million settlement over asbestos claims filed Tuesday might finally end the six-year bankruptcy proceedings of auto parts maker Federal-Mogul Corp.

The Michigan-based company was in the middle of the second day of presenting its fourth amended reorganization plan to Judge Judith Fitzgerald in the U.S. Bankruptcy Court for the District of Delaware when the settlement agreement was filed.

Federal-Mogul and 156 of its U.S. and U.K. subsidiaries filed for Chapter 11 in 2001 because of “excessive” litigation over asbestos liabilities mounting into the billions...
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