Meritor subsidiary Maremont’s pre-packaged plan effective as of July 9

By Caroline Salls

Pittsburgh, July 9 – Meritor, Inc. said non-operating subsidiary Maremont Corp.’s pre-packaged plan of reorganization took effect on Tuesday, according to a news release.

The plan was confirmed by the U.S. Bankruptcy Court for the District of Delaware on May 17 and the confirmation order was upheld by the U.S. District Court for the District of Delaware on June 27.

Meritor said all current and future asbestos claims related to the Maremont debtors’ historical asbestos-related activities have been channeled to an asbestos trust that will process and pay the claims going forward.

The parent company said the trust has been funded with a $28 million contribution from Meritor and Maremont’s remaining assets, including $21 million in cash and intercompany loan receivables, as well as its remaining insurance assets.

All claims other than asbestos claims against the Maremont debtors will be paid in full or reinstated.

Meritor said its equity interests in Maremont have been cancelled. The trust now owns 100% of the equity interests in reorganized Maremont.

Maremont is a Troy, Mich.-based global supplier of drivetrain, mobility, braking and aftermarket solutions for commercial vehicle and industrial markets that filed for bankruptcy on Jan. 22. The Chapter 11 case number is 19-10118.

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