Leslie Controls hopes to emerge in fourth quarter; plan confirmed

By Caroline Salls

Pittsburgh, Oct. 28 - Circor International, Inc. wholly owned subsidiary Leslie Controls, Inc. is targeting a fourth-quarter emergence from bankruptcy after the U.S. Bankruptcy Court for the District of Delaware confirmed Leslie's plan of reorganization on Thursday, according to a news release.

As previously reported, an attorney close to the case told Prospect News on Wednesday that the plan had been approved and the confirmation order was expected to be signed on Oct. 28.

The reorganization plan is intended to permanently resolve Leslie's asbestos liability through the creation of a trust under Section 524(g) of the U.S. Bankruptcy Code.

All current and future asbestos claims against Leslie would be channeled to the trust for review and payment, providing both Leslie and Circor with permanent court protection from the asbestos claims.

According to the release, Leslie is awaiting review and approval of the 524(g) trust aspects of the reorganization plan by the U.S. District Court for the District of Delaware.

Upon entry of the district court order, and absent a stay pending appeal, Leslie and Circor would fund the trust once various closing conditions are satisfied and the plan takes effect.

"Receiving bankruptcy court confirmation is a major step toward Leslie's emergence from Chapter 11," Circor chairman, president and chief executive officer Bill Higgins said in the release.

"We are now focused on obtaining district court approval and the plan becoming effective as soon as possible.

"We look forward to concluding this chapter in Leslie's history and enabling Leslie to grow and contribute to Circor's profitability and cash flow going forward."

Leslie Controls is a subsidiary of Circor, a Burlington, Mass.-based designer, manufacturer and distributor of fluid-control products and services. Leslie filed for bankruptcy on July 12, and its Chapter 11 case number is 10-12199.

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