Quigley mesothelioma claimants object to disclosure statement

By Caroline Salls

Pittsburgh, Sept. 15 - Quigley Co., Inc.'s disclosure statement for its plan of reorganization drew objection from a representative of victims of mesothelioma, according to a Thursday filing with the U.S. Bankruptcy Court for the Southern District of New York.

According to the objection, Quigley manufactured and distributed asbestos containing products that caused mesothelioma and, consequently, the death of many people.

The victims reached a $430 million settlement agreement with Quigley and parent Pfizer Inc. on April 2, 2002.

The objection said the disclosure statement fails to provide adequate information on the terms of the settlement agreement.

Also, the victims said the proposed statement does not disclose whether non-debtors are being released from independent liabilities, and, to the extent they are being released, the plan is unconfirmable because it improperly provides a release and protection from the proposed asbestos personal injury channeling injunction.

Also, the objection is based on the plan's attempt to value all personal injury claims at $1.00 for voting purposes, "regardless of disease category."

"By valuing each asbestos PI claim at $1.00, the need to obtain a confirming vote both as to number and amount is missing because the two requirements are collapsed together," the objection said.

"Indeed, the amount voting will be a mirror image of the numerical count. In this case, it is entirely possible that, even if the number of votes in favor of the plan reaches the necessary 75%, the two-thirds in dollar amount requirement will not be met."

A hearing for approval of the disclosure statement is scheduled for Sept. 28.

Quigley, a unit of Pfizer Inc., 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.