ERJ staff report (DS)
Charlotte, South Carolina -- Garlock Sealing Technologies LLC has filed a voluntary petition under Section 524(g) of the US Bankruptcy Code. The filing in the US Bankruptcy Court for the Western District of North Carolina in Charlotte will establish a trust that would resolve all current and future asbestos claims against Garlock.
The filing includes Garlock Sealing Technologies LLC's operations in Palmyra, New York and Houston, Texas. It does not include EnPro Industries or any other EnPro operating subsidiary. Garlock expects to continue normal business operations during claims resolution process
The copany is engaged in on-going litigation over liability for asbestos poisoning. Garlock's parent aims to resolve the litigation through the bamrupcy procedures.
"Garlock is a fundamentally sound business with excellent products and prospects. We believe a trust established through the bankruptcy court would provide Garlock an opportunity lacking in the tort system to completely resolve its asbestos claims while preserving the inherent value of the company and protecting its future. We believe a fairly valued trust could be established and funded by Garlock for a cost less than the cost of remaining in the tort system," said Steve Macadam, president and chief executive officer of EnPro, Garlock's parent.
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Press release from Enpro