Federal-Mogul injury claimants request appointment of additional future claims representative

By Caroline Salls

Pittsburgh, June 26 - Federal-Mogul Corp. personal injury claimants with claims for exposure to asbestos-containing products made by Pneumo Abex LLC requested appointment of an additional future claimants representative in light of potential conflict of interest with the current representative, according to a Friday filing with the U.S. Bankruptcy Court for the District of Delaware.

According to the motion, the Abex claimants perceive "an inescapable and incurable conflict of interest among the current multiple representations of the current future claims representative, especially between the future Abex claimants and all other asbestos claimants against the [company]."

Specifically, the Abex claimants said each of the company's seven streams of asbestos liability arises from different legal entities, and each stream has separate sets of asbestos claimants making claims, as well as access to vastly different sources of recovery for asbestos claimants.

To the contrary, the Abex claims are claims against a solvent non-debtor, Pneumo Abex, and the Abex claimants have a unique source of recovery compared to the claimants of the other six streams of asbestos liability, including substantial insurance covering the claims.

Also, the motion said the Abex claims are not barred by the automatic stay because they are claims against a non-debtor for the actions of such non-debtor.

Since the petition date, more than 100,000 Abex claims have been resolved, but every other asbestos claim against Federal-Mogul has been stayed pending resolution of the bankruptcy cases.

A hearing is scheduled for Aug. 28.

Federal-Mogul, a Southfield, Mich.-based auto parts manufacturer, filed for bankruptcy on Oct. 1, 2001. Its Chapter 11 case number is 01-10578.

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