Specialty Products requests stay of estimation ruling pending appeal

By Caroline Salls

Pittsburgh, June 18 - Specialty Products Holding Corp. asked the U.S. Bankruptcy Court for the District of Delaware to stay an order determining the estimated amount of the company's asbestos liability claims pending appeal, according to a June 18 court filing.

In estimating the present value of asbestos claims at $1.1 billion, the company said the court measured its likely settlement payments had the claims remained in the state-court tort systems, rather than determining the legal merits of the claims under applicable law.

Given the importance of the estimation to its cases, Specialty Products said its debtors appealed the estimation ruling and are looking to certify that appeal to the Third Circuit.

The company said it has at least a substantial case to present an appeal and there is a strong likelihood that the appeal will be successful.

A hearing is scheduled for July 18.

Specialty Products is a subsidiary of RPM International, a Medina, Ohio-based producer of specialty chemicals. The subsidiary filed for bankruptcy on May 31, 2010 under Chapter 11 case number 10-11780.

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