Metex Manufacturing in bankruptcy to address Kentile asbestos claims

By Caroline Salls

Pittsburgh, Nov. 9 - Metex Manufacturing Corp., formerly known as Kentile Floors, Inc., filed Chapter 11 bankruptcy Friday in the U.S. Bankruptcy Court for the Southern District of New York.

Sole director and president Anthony J. Miceli said in a statement filed with the court that Kentile had filed a previous Chapter 11 bankruptcy case in 1992.

Based upon reports provided to Metex by the Kentile insurers, Miceli said there were still about 6,000 active asbestos personal injury claims and more than 20,000 inactive asbestos personal injury claims outstanding against Kentile as of Friday.

Miceli said Metex solicited votes on a pre-packaged plan of reorganization designed to deal with the asbestos claims in June, but that plan was not accepted by the necessary number of claimants by dollar amount.

While the voting process did not result in acceptance of the pre-packaged plan, Miceli said Metex decided to file for bankruptcy to continue a stay of a coverage action and to preserve asbestos settlements reached with the Kentile insurers.

Metex plans to seek bankruptcy court approval of those settlements, Miceli said.

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

The company did not list any unsecured creditors with claims of $1 million or more.

The company is represented by Reed Smith LLP.

Metex is a Great Neck, N.Y.-based tile manufacturer. Its Chapter 11 case number is 12-14554.

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