Quigley/Reaud deal on $78.2 million of claims is approved by court

By Jim Witters

Wilmington, Del., Feb. 13 - Quigley Co., Inc. received approval of a stipulation with Reaud, Morgan & Quinn, LLP in which Reaud agreed to withdraw about $78.2 million of claims, according to a Feb. 13 filing with the U.S. Bankruptcy Court for the Southern District of New York.

As previously reported, Quigley said the Reaud proof of claim consisted of a $7.68 million secured claim based on a Texas state court order of summary judgment obtained against Quigley and parent Pfizer Inc. and $70.52 million of unsecured claims filed in connection with Quigley and Pfizer's alleged breach of contract.

Quigley argued that Reaud's unsecured claims for breach of contract were invalid and that any of Reaud's personal injury claims found to be valid should be treated as other asbestos personal injury claims.

Quigley also objected to the unsecured claims in October on the grounds that settlement agreements that form the basis for those claims are unenforceable under Texas law.

In a Dec. 14 settlement agreement with Pfizer, Reaud agreed to settle the lawsuit underlying secured and unsecured claims, withdraw the proof of claim in its entirety to remove any ambiguity that the unsecured claims were anything but other asbestos personal injury claims under Quigley's plan of reorganization and submit any remaining asbestos-related claims its clients may hold against Quigley and Pfizer that derive from Quigley's liability to a trust established under the plan.

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

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