Quigley's plan of reorganization calls for Pfizer to contribute $405 million to asbestos injury trust

By Ellen Chang

Houston, March 7 - Quigley Co.'s proposed plan of reorganization calls for parent Pfizer Inc. to contribute $405 million to an asbestos-related personal injury trust, according to a March 4 filing with the U.S. Bankruptcy Court for the Southern District of New York.

The asbestos personal injury trust will also receive all the common stock of the reorganized company and Pfizer will give the reorganized Quigley the license to make, sell and distribute four pharmaceutical drugs - Vistaril, Zarontin, Glynase and Navane.

Pfizer's $405 million contribution will be structured as an annuity, payable in equal installments over 40 years.

By class, the treatment of claims is:

* Pfizer is the sole holder of the $52.72 million senior secured claim. Pfizer will receive cash equal to 100% of the claim less $30 million which Pfizer has agreed to forgive as part of its contribution to the asbestos-related personal injury trust;

* The $32.5 million of unsecured claims will receive a percentage of their claim in cash;

* All asbestos-related personal injury claims will be channeled to the asbestos-related personal injury trust; and

* Pfizer, as the sole holder of the equity interests in class 5, will transfer the common stock of the reorganized Quigley to the asbestos-related personal injury trust.

Quigley said the company does not have any priority claims since it paid its employees each $4,925 for compensation earned 90 days before the bankruptcy filing date.

The asbestos-related personal injury trust will be funded in part by all of Quigley's common stock; a contribution from Quigley made up of its asbestos insurance proceeds plus its excess cash on hand less an amount for working capital, payment of claims and other requirements; and the contribution from Pfizer.

The trust will use its assets and income to pay asbestos-related personal injury claims.

The trust will pay the following scheduled amounts for asbestos-related claims:

* $100,000 for mesothelioma;

* $50,000 for complex silicosis/lung cancer;

* $35,000 for lung cancer 1;

* $20,000 for severe asbestosis;

* $18,500 for other cancers;

* $15,000 for severe silicosis;

* $2,000 for asbestos/pleural disease 1;

* $1,000 for silicosis 1; and

* $250 for asbestosis/pleural diseases II or silicosis II.

Quigley filed for bankruptcy on Sept. 3 to resolve its asbestos litigation. Its Chapter 11 case number is 04-15739.

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