Combustion Engineering plan of reorganization final; no appeals filed with district court

By Caroline Salls

Pittsburgh, April 3 - ABB Ltd. subsidiary Combustion Engineering's plan of reorganization became final Monday, and no appeals were filed with the U.S. District Court opposing the plan, according to a company news release.

According to the release, the finalization of Combustion Engineering's plan clears the way for asbestos claimants to receive payments from the trust to be set up under the plan.

The plan's channeling injunction will protect ABB and its subsidiaries from current and future asbestos claims against Combustion Engineering.

ABB has committed $1.43 billion in cash and other assets to pay settled asbestos claims against Combustion Engineering.

"This is a milestone in the history of ABB," ABB president and chief executive officer Fred Kindle said in the release.

"We are very glad to have a resolution of this important issue, which removes significant uncertainty that has harmed ABB over the years. The finalized plan brings benefits to both ABB and asbestos claimants."

The release said a much smaller number of asbestos claims against U.S. subsidiary ABB Lummus Global Inc. are in the process of being resolved.

In September 2005, claimants to the Lummus plan of reorganization voted 96%in favor of the plan.

ABB said it expects to file the Lummus plan in the very near future.

Zurich-based ABB provides power and automation technologies to utility and industry customers.

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