Quigley tort victims call for plan confirmation denial, case dismissal

By Caroline Salls

Pittsburgh, Nov. 5 - Quigley Co. Inc.'s informal committee of tort victims asked the U.S. Bankruptcy Court for the Southern District of New York to deny confirmation of the company's reorganization plan and dismiss its bankruptcy case, according to a Wednesday court filing.

"Given the passage of more than four years since this case was filed, during which time hundreds if not thousands of individuals have died from the effects of their asbestos exposure, as well as more than seven months since this issue was first raised, Pfizer and Quigley's failure to address the issue further demonstrates their astonishing (and continuing) lack of good faith," the committee said in the motion.

"It is time for those who have been sickened by exposure to asbestos as a result of Pfizer's actions to finally have their say."

The committee said Quigley's plan does not comply with Sections 1129 and 524(g) of the Bankruptcy Code because it does not call for the appointment of a separate and independent legal representative for anyone who chooses to assert future demands against Quigley parent Pfizer, Inc.

According to the motion, in 2003, "Pfizer embarked on an improper and inequitable scheme design to obtain expansive protection from its own asbestos liability through Section 524(g) of the Bankruptcy Code without having to file a bankruptcy petition in its own name."

The committee said Pfizer "set out to buy enough votes, as cheaply as possible, to ensure passage of its plan."

Throughout Quigley's bankruptcy, the committee said Pfizer and Quigley have claimed that virtually all of the asbestos-related claims against Pfizer are derivative of a Quigley product.

"Thus, the inescapable conclusion is that when entering [pre-bankruptcy asbestos liability settlements], Pfizer was either putting a rough price tag on the extent of its derivative liability to a portion of present claimants or engaging in unadulterated vote-buying," the committee said in the motion.

However, the committee said Pfizer forgot to make a provision for a representative to look after future demands.

"In other words, there has never been an independent, non-conflicted representative to ensure that all future claimants would be treated fairly and equitably under the proposed plan," the committee said in its motion.

Under the circumstances of Quigley's bankruptcy case, the committee said it is impossible for a single representative to look out for the interests of both future demands on both Quigley and Pfizer "because the interests of those holding such future demands are wholly dissimilar."

A hearing is scheduled for Dec. 11.

Quigley, a unit of Pfizer Inc., filed for bankruptcy on Sept. 3, 2004. Its Chapter 11 case number is 04-15739.

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