Federal-Mogul, AIG Units Reach Asbestos Deal

Law360, New York (January 14, 2009, 12:00 AM EST) -- An asbestos litigation trust created through the bankruptcy proceedings of auto parts maker Federal-Mogul Corp. has asked a federal court to approve a settlement with eight entities of litigation insurance provider American International Group Inc.

On Tuesday, the Federal-Mogul Asbestos Personal Injury Trust filed a motion in the U.S. District Court for the District of Delaware seeking approval to include the AIG units as protected parties under Federal-Mogul’s bankruptcy plan, in exchange for potentially tens of millions of dollars in payouts.

The settlement would put to...
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