Federal-Mogul Judge Sticks With 'Plan B' Payout

Law360, New York (October 1, 2008, 12:00 AM EDT) -- The U.S. Bankruptcy Court in Delaware has rejected a request to use the Federal-Mogul Corp. asbestos trust to exclusively handle claimants, opting instead to embrace a straight $138 million payout from the auto supplier's estate to the other businesses still wrangling with claims.

On Tuesday, Cooper Industries Ltd., an electronic and tool manufacturer, revealed that the court had demurred from approving a payout for claimants involving the Pneumo Abex brake business from a previously-established trust, embracing the so-called Plan B settlement.

“The plan supporters’ request for...
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