Bestwall asbestos committee, future claims representative file plan

By Caroline Salls

Pittsburgh, May 21 – Bestwall LLC’s official committee of asbestos claimants and future claims representative filed a plan of reorganization for the company’s Chapter 11 case on Thursday with the U.S. Bankruptcy Court for the Western District of North Carolina.

Under the plan, creditors in the administrative expense claim, priority tax claim, general unsecured claim and intercompany claim classes will be paid in full in cash.

Asbestos personal injury claims will be channeled to an asbestos personal injury trust.

All existing equity interests will be cancelled, and holders will receive no distribution.

Before the plan effective date, Bestwall will liquidate its interests in all of its subsidiaries upon the closing of a subsidiary sale transaction.

A funding agreement will be assumed by the company, and Bestwall’s rights and benefits under that agreement will be assigned to the asbestos personal injury trust.

All causes of action filed by the committee during the course of the Chapter 11 proceedings will also be transferred to the trust, as will 100% of new Bestwall membership shares.

The trust claims fund will be used to pay asbestos personal injury claims and settled asbestos claims liquidated by the trust in accordance with the funding agreement and trust distribution procedures.

Bestwall, an affiliate of Atlanta-based pulp and paper company Georgia Pacific, filed for bankruptcy on Nov. 2, 2017. Bestwall’s Chapter 11 case number is 17-31795.

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