Asbestos-Related Claims Diluted For Voting On Plan

Law360, New York (July 27, 2007, 12:00 AM EDT) -- The claims of asbestos injury claimants were significantly diluted for the purposes of voting on a debtor’s chapter 11 plan to ensure that the votes the settling claimants received were commensurate with their economic interest.

The United States Bankruptcy Court for the Southern District of New York held that in estimating claims of asbestos personal injury claimants for the purpose of determining whether debtor’s plan had been accepted, the court would dilute the claims of certain asbestos injury claimants that settled pre-petition with debtor’s parent company...
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