Aldrich Pump, Murray Boiler file bankruptcy amid asbestos claims

By Caroline Salls

Pittsburgh, June 18 – Aldrich Pump LLC and Murray Boiler LLC filed Chapter 11 bankruptcy on Wednesday in the U.S. Bankruptcy Court for the Western District of North Carolina.

Vice president and chief executive officer Ray Pittard said in a statement filed with the court that Aldrich is a subsidiary of Trane Technologies, which completed a spinoff of its industrial business in the first quarter. The industrial business was subsequently merged with Gardner Denver Holdings, Inc. Before the industrial business spinoff, the company was known as Ingersoll Rand plc.

On May 1, Aldrich’s predecessor, the former Ingersoll Rand, underwent a corporate restructuring.

In addition, Pittard said Aldrich is a defendant in asbestos litigation dating back to 1983 in connection with its production of industrial equipment that incorporated asbestos-containing materials.

Pittard said a key objective of the 2020 corporate restructuring was to make sure that each of the debtors has the same ability to satisfy asbestos claims as the former Ingersoll Rand and Trane did before their restructurings.

As a result of the 2020 corporate restructuring, Aldrich was allocated some of old Ingersoll Rand’s assets and became solely responsible for some of its liabilities, including the asbestos claims and defense of those claims.

A support agreement established reciprocal indemnification obligations corresponding to the allocation of liabilities in the divisional merger.

In addition, Pittard said a funding agreement was established between New Trane Technologies and Aldrich that ensures that Aldrich has the same ability to pay the asbestos claims against it as old Ingersoll Rand had before the corporate restructuring.

Aldrich was allocated $26.2 million in cash, a 100% equity interest in 200 Park, various confidential insurance coverage-in-place agreements and related insurance rights, which place under agreement about $750 million in unexhausted coverage for asbestos claims for which Aldrich is responsible, all contracts of old Ingersoll Rand related to its asbestos-related litigation and causes of action that relate to the assets and liabilities allocated to Aldrich.

Meanwhile, the Murray debtor was allocated $16.1 million in cash, a 100% equity interest in ClimateLabs, various confidential insurance coverage-in-place agreements and related insurance rights, which place under agreement about $1 billion in unexhausted coverage for asbestos claims for which Murray is responsible, as well as additional unsettled excess layer insurance policies for asbestos claims against Old Train with $790 million in unexhausted limits, all contracts of old Old Trane related to its asbestos-related litigation and causes of action that relate to the assets and liabilities allocated to Aldrich.

Pittard said the Aldrich debtors’ goal in these cases is to negotiate and ultimately confirm a plan of reorganization that establishes and funds a trust to resolve and pay valid current and future asbestos-related claims and provides for an injunction that will permanently protect the debtors and their affiliates from any further asbestos-related claims arising from products sold by Old Ingersoll Rand and Old Trane.

Aldrich said it has sufficient assets, including cash available under the funding agreements, to fund the cases and a review of the claims.

According to court documents, Aldrich has $100 million to $500 million in both assets and debt.

Rayburn Cooper & Durham, PA is serving as legal counsel for Aldrich in its Chapter 11 cases.

Davidson, N.C.-based Aldrich provides climate control solutions. The Chapter 11 case number is 20-30608.

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