Aldrich Pump asbestos claimant committee calls for dismissal of case

By Sarah Lizee

Olympia, Wash., May 16 – The official committee of asbestos personal injury claimants of Aldrich Pump LLC and Murray Boiler LLC is seeking dismissal of the debtors’ Chapter 11 bankruptcy cases, according to a motion filed Monday with the U.S. Bankruptcy Court for the Western District of North Carolina.

The committee said debtors are not financially distressed, as they have “uncapped” support from Trane U.S., Inc. and Trane Technologies plc (formerly Ingersoll-Rand plc), providing access to sufficient funds to fully and timely pay all of their creditors now and in the future.

The group said the debtors’ cases were filed, and are being pursued, for litigation advantage to obtain unjustified relief in the nature of a cap on their liability, and to obtain that relief for entities not in bankruptcy.

“Rich corporations with liability for injuries sustained through exposure to their products have manipulated state law, corporate form, venue loopholes, and bankruptcy law with the express goal of obtaining bankruptcy relief for themselves,” the committee said in its motion.

“These rich, non-debtor tortfeasors intentionally – and admittedly – designed a structure with the goal of preventing the bankruptcy court from overseeing these non-debtor, asset-rich operating entities and subjecting their profitable business operations and assets to bankruptcy.

“The resulting ‘debtor’ entities are wholly reliant on their rich affiliates – operationally and financially – with ‘funding agreements,’ ‘shared services agreements,’ and other support agreements propping up the sacrificial ‘debtor’ companies.”

Davidson, N.C.-based Aldrich provides climate control solutions. The company filed bankruptcy on June 17, 2020 under Chapter 11 case number 20-30608.

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