Leslie Controls funds asbestos trust, emerges from bankruptcy

By Caroline Salls

Pittsburgh, April 28 - Circor International, Inc. said wholly owned subsidiary Leslie Controls, Inc. has funded the Section 524(g) asbestos trust established under its Chapter 11 reorganization plan and emerged from bankruptcy.

"The funding of the trust and the completion of this process is a tremendous accomplishment for Circor, our shareholders and our employees," Circor chairman, president and chief executive officer Bill Higgins said in a news release.

"With Leslie's emergence from Chapter 11 reorganization, we can focus our full attention on executing our growth strategy and further enhancing value for our shareholders."

As previously reported, Leslie's second "conformed" plan of reorganization was approved by the U.S. Bankruptcy Court for the District of Delaware in January. That ruling was affirmed in February by the U.S. District Court for the District of Delaware.

The plan was originally confirmed in October 2010, but Leslie made changes to the plan to resolve appeals filed by several insurers.

The company said the changes did not affect the treatment of any claims or equity interests.

As previously reported, treatment of creditors will include:

• Secured claims will be reinstated;

• Holders of general unsecured claims will have their claims reinstated, and Leslie will pay any required amounts in full;

• Asbestos personal injury claims will be channeled to the trust; and

• Holders of Leslie equity interests will retain those interests, which will become reorganized Leslie common stock. The common stock will be transferred to the asbestos trust until a related promissory note is paid in full.

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, 2010, and its Chapter 11 case number is 10-12199.

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