Uniroyal files for Chapter 11 to wind up legacy liabilities

Naugatuck, Connecticut – Former tire maker Uniroyal Holding Inc. and subsidiary Great Hill Corp. have filed for Chapter 11 bankruptcy protection in the US as they seek court approval to wind up the business and resolve decades-old retiree and asbestos liabilities.

Under a proposed restructuring plan, the debtors will pay non-asbestos creditors in full, establish a trust to resolve current and future asbestos personal injury claims, settle retiree medical and life insurance obligations, and dissolve the companies.

According to a 31 July court filing, the plan is supported by an ad hoc group of law firms representing about 88% of known asbestos personal injury claimants, following months of negotiations.

Uniroyal said it no longer has operating businesses and has spent the past four decades managing legacy obligations, including retiree medical and life insurance benefits and asbestos litigation, using income generated from its investment portfolio.

The company said it decided to file now as its remaining five employees, all aged between 69 and 73, are approaching retirement, making it an appropriate time to complete an orderly wind-down.

Uniroyal traces its origins to the United States Rubber Co., founded in 1892 and one of the original constituents of the Dow Jones Industrial Average.

The company exited its operating businesses following a series of restructurings in the mid-1980s after becoming privately owned.

The Uniroyal tire brand was divested in stages during the 1980s and 1990s with the European operations sold to Continental AG in 1979.

The North American tire business merged with BF Goodrich in 1986 before being entirely acquired by the Michelin Group in 1990.