Yarway files Chapter 11 bankruptcy to address asbestos damages claims

By Caroline Salls

Pittsburgh, April 23 - Yarway Corp. filed Chapter 11 bankruptcy Monday in the U.S. Bankruptcy Court for the District of Delaware.

Vice president and secretary Kevin Coen said in a statement filed with the court that Yarway's bankruptcy filing was prompted by claims that the company is liable for damages caused by exposure to asbestos-containing products it allegedly manufactured, distributed and/or sold.

The products in question date as far back as the 1920s. Coen said the company's alleged manufacture, distribution and/or sale of asbestos-containing materials stopped entirely in 1988.

Coen said the company has paid $128.97 million in settlement of asbestos personal injury claims over the past five years, including more than $18 million in its 2013 fiscal year through March 31.

In addition, Yarway's insurance coverage to pay the settlement costs has diminished, Coen said.

Coen said the company filed bankruptcy to negotiate a plan of reorganization that creates a trust for payment of current and future asbestos claims and to obtain an injunction protecting it from future claims tied to the products it manufactured, distributed and/or sold.

According to court documents, Yarway has $100 million to $500 million in both assets and debt.

All of the company's largest unsecured creditors listed on the Chapter 11 petition have disputed asbestos personal injury claims in unliquidated amounts.

Tyco Fire & Security US Holdings LLC owns a 100% stake in Yarway.

The company is represented by Cole, Schotz, Meisel, Forman & Leonard.

Yarway is a Boca Raton, Fla.-based industrial valve maker. Its Chapter 11 case number is 13-11025.

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