An Affiliate of Saint-Gobain in the US Takes Action to Achieve Equitable and Permanent Resolution of Its Asbestos Liabilities
January 23 2020 - 2:45PM
Business Wire
DBMP LLC, an affiliate of CertainTeed LLC, based in North
Carolina that holds the legacy asbestos liabilities of the former
CertainTeed Corporation, today announced that it has filed a
voluntary petition for Chapter 11 relief in the U.S. Bankruptcy
Court for the Western District of North Carolina in Charlotte in an
effort to equitably and permanently resolve all of its current and
future asbestos claims. Chapter 11 is a special legal process under
U.S. law, which can take 3 to 8 years to run its course, that
immediately stays all litigation thus allowing the filing company
the time and protection to negotiate in a single forum an agreement
approved by claimants and by the court.
DBMP LLC intends to seek court authority to establish a trust
under Section 524(g) of the U.S. Bankruptcy Code to ensure that all
individuals with current and future asbestos claims are treated
fairly and equitably. Section 524(g) is a specific provision of the
U.S. Bankruptcy Code that is applicable to companies that have been
subject to and would continue to face substantial numbers of
asbestos-related claims: dozens of companies – including a number
of the most prominent defendants – have used this process to
resolve their asbestos liabilities.
DBMP LLC is the parent company of another North Carolina entity,
which operates manufacturing plants that are unaffected by the
filing and will continue as usual with no impact on employees,
customers and suppliers. All other affiliates of the Saint-Gobain
Group in the U.S. are not part of the Chapter 11 filing and will
continue to operate in normal course.
This bankruptcy filing is intended to enable DBMP LLC to achieve
a certain, final and equitable resolution of all current and future
claims arising from asbestos-containing products manufactured or
sold by the former CertainTeed Corporation. While DBMP LLC pursues
such a resolution through the bankruptcy process, all asbestos
litigation will be stayed and all related costs suspended.
The establishment of a trust to pay all current and future
asbestos claims is consistent with the values of DBMP LLC, and
before it, the former CertainTeed Corporation, which have
responsibly managed their asbestos-related issues. The trust will
benefit both the claimants and DBMP LLC. Current and future
plaintiffs with meritorious claims will be able to receive faster
payment of their claims without the delay, stress and uncertainty
of litigation in the tort system. At the same time, the creation
and funding of such a trust will permanently resolve DBMP LLC’s
asbestos liabilities, eliminating cash flow volatility caused by
the litigation.
DBMP LLC is taking this action at this time as a result of the
increasing risks presented in the tort system. Despite the aging of
the population and lessening opportunity for claimants to assert
legitimate claims of exposure to CertainTeed Corporation
asbestos-containing products, naming practices in the tort system
continue to result in a steady volume of claims against DBMP LLC,
with no foreseeable end in sight. Moreover, in general, settlement
demands and verdicts in the tort system are escalating.
At Saint-Gobain Group level, the stay of litigation will result
in all legal costs and indemnity payments related to DBMP LLC’s
numerous asbestos claims being suspended, and no more annual
charges in relation to such claims (estimated at €88 million in
2019). Other than this effect on cash flow and annual charges, the
impact of today’s decision of DBMP LLC is not expected to
materially affect Saint-Gobain’s overall financial situation
(including its current provisions), profitability, and cash
generation profile. As of today, DBMP LLC and its subsidiary will
no longer be consolidated with the Group and, as a result, their
operating income (estimated at €12 million, on a full year basis)
will no longer be included in the Group’s operating income.
History of Asbestos Products and Litigation
DBMP LLC’s asbestos liabilities relate primarily to various
products manufactured and/or sold by CertainTeed Corporation, which
last manufactured products containing asbestos in 1992. At the time
of the bankruptcy filing, DBMP LLC had more than 60,000 claims,
more than 32,000 of which are in active litigation.
Additional information regarding DBMP LLC and the section 524(g)
process is available by sending an email to
DBMPInfo@saint-gobain.com. Court filings and information about
DBMP’s bankruptcy case are available by calling or emailing DBMP’s
claims and noticing agent, Epiq, at (at 866-977-0765 (US Parties);
503-924-5411 (non-US Parties); and dbmp@epiqglobal.com. The case
website address from Epiq is also https://dm.epiq11.com/dbmp.
ABOUT SAINT-GOBAIN
Saint-Gobain designs, manufactures and distributes materials and
solutions which are key ingredients in the wellbeing of each of us
and the future of all. They can be found everywhere in our living
places and our daily life: in buildings, transportation,
infrastructure and in many industrial applications. They provide
comfort, performance and safety while addressing the challenges of
sustainable construction, resource efficiency and climate
change.
€41.8 billion in sales in 2018 Operations in 68 countries
More than 180,000 employees
For more information about Saint-Gobain Visit
www.saint-gobain.com and follow us on Twitter @saintgobain
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200123005772/en/
Analyst/Investor relations Vivien Dardel +33 1 47 62 44
29 Floriana Michalowska +33 1 47 62 35 98 Christelle Gannage +33 1
47 62 30 93
Press relations Laurence Pernot +33 1 47 62 30 10
Patricia Marie +33 1 47 62 51 37 Susanne Trabitzsch +33 1 47 62 43
25
Cie de SaintGobain (EU:SGO)
Historical Stock Chart
From Nov 2024 to Dec 2024
Cie de SaintGobain (EU:SGO)
Historical Stock Chart
From Dec 2023 to Dec 2024