Quigley plan confirmation hearing set for July 10; DIP facility extended; settlements approved

By Rebecca Melvin

New York, March 6 - Quigley Co. Inc., a unit of Pfizer Inc., received court approval Thursday of a schedule for reorganization plan confirmation that includes a July 10 confirmation hearing date, subject to plan voting, counsel for the company said.

Quigley expects to file a revised plan disclosure statement with the U.S. Bankruptcy Court for the Southern District of New York in about a week as part of that schedule, attorney Michael Cook of Schulte Roth & Zabel said.

The disclosure statement has been amended since last considered Nov. 5. At that time, Quigley's plan was surrounded by controversy as both the ad hoc committee of tort victims and the office of the U.S. Trustee asserted that the plan is unconfirmable due to fraudulent devices employed by Pfizer and Quigley such as voter manipulation.

Cook said the plan has been amended.

Also on Thursday, Quigley received court approval to extend its debtor-in-possession financing facility for six months to Aug. 18, 2008.

Quigley also received court approval of a settlement agreement with claimants, known as the Freeman family, for an asbestos-related claim of $1.1 million plus $155,543 in deficiency claim.

The claim stems from 2001when the Freeman claimants sued various defendants including Quigley for the alleged wrongful death of Jerry Freeman from his work with various materials including asbestos, silica, talc and vermiculite.

Quigley originally developed and marketed a broad range of refractories for the iron, steel and glass industries.

Also on Thursday, the bankruptcy court approved Quigley's settlement agreement under which OneBeacon Insurance Co. will pay Quigley and parent Pfizer Inc. $3.25 million to resolve insurance claims and resolve litigation pending in Delaware.

Prior to Quigley's 2004 bankruptcy filing, Quigley issued bills to OneBeacon for $41.74 million relating to the terms of a 1998 settlement agreement. OneBeacon had paid only $38.49 million, according to the Quigley motion.

In 2001, Pfizer and Quigley, along with other plaintiffs, brought the Delaware action against OneBeacon and various other insurers. That case was bifurcated into liability and damages phases. OneBeacon previously had obtained a favorable summary judgment ruling on certain issues in the liability phase, which could have jeopardized Quigley's and Pfizer's chances of success, according to the motion.

Quigley filed for bankruptcy on Sept. 3, 2004. Its Chapter 11 case number is 04-15739.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.