November 6, 2012 – United Gilsonite Laboratories (UGL), a company headquartered in Dunmore, Pennsylvania, recently announced that it will pledge $11.75 million dollars to a trust fund to settle numerous outstanding asbestos-related claims. This well known Pennsylvania manufacturing company previously filed for Chapter 11 bankruptcy. A bankruptcy reorganization plan has been established with the development of the trust fund being a key part of the proposal.
The company has manufactured and sold a wide range of masonry, wood repair and finishing products including paints, sealants and coatings for many years. Asbestos was utilized by the company in manufacturing joint compound which is a cement-like sealant used in the construction industry. They used and sold the asbestos-containing product from the 1950’s until the mid 1970’s. Asbestos, a tiny fibrous material, is now known to be a human carcinogen, with asbestos exposure linked to numerous serious respiratory illnesses including malignant mesothelioma, asbestosis, lung cancer and other asbestos-related diseases.
Asbestos-Related Lawsuits against UGL
UGL is now facing more than 950 lawsuits across at least 14 states. The company in conjunction with its insurers has already paid out more than $25 million dollars in damages from asbestos-related claims in which the company was named as the defendant. Facing additional liability in asbestos cases, the company sought bankruptcy protection.
If the bankruptcy reorganization plan gets approved, people who suffer or suffered from asbestos exposure and are seeking compensation would need to file a claim within one year of the date that the trust is established. A court appointed panel would investigate and determine if claimants meet the eligibility requirements.
UGL currently employs an estimated 150 people of which about 80 of them work at the Dunmore, Pennsylvania location. Some of these workers may have been employed during the time that asbestos was used in the facility and now face the dangerous risk of developing asbestos-related diseases such as malignant mesothelioma or lung cancer.
Asbestos Trust Fund Will Provide Compensation to Victims
If the asbestos trust fund is established by the bankruptcy Court, United Gilsonite Laboratories will deposit $2 million into an account with a pledge to provide an additional $8 million. The shareholders of the company will contribute $1.75 million. In addition, UGL’s insurers will also put monetary contributions into the settlement fund; however, the specific amounts have not yet been disclosed.
Contact the Asbestos Attorneys at Shein Law in Philadelphia Pennsylvania and Pennsauken, New Jersey
If you or someone you love has developed asbestosis, lung cancer, mesothelioma or any other illness due to asbestos exposure from United Gilsonite Laboratories products or any other company’s products or workplace facility, you may be entitled to receive financial compensation for your medical expenses, ongoing treatment, lost wages, and pain and suffering. We encourage you to contact Shein Law at either our Philadelphia, Pennsylvania or Pennsauken, New Jersey locations. Call today at 1-877-SHEINLAW (1-877-743-4652) to make an appointment with one of our experienced, knowledgeable asbestos lawyers or contact us online.