Federal-Mogul Corp., auto parts manufacturer, won court approval of a reorganization plan that resolves potentionally $9.4 billion of dollars in asbestos claims that forced the company into bankruptcy six years ago.
The reorganization plan, which sets up a trust to compensate victims of Federal-Mogul's asbestos-laden products, was approved by U.S. Bankruptcy Judge Judith Fitzgerald in Pittsburgh, PA,
The 157 companies that make up Federal-Mogul filed for Chapter 11 protection in October 2001. At that time there were approximately 500,000 asbestos claims confronting the company. Before the company can conclude bankruptcy, its plan must also be approved by federal District Court Judge Joseph H. Rodriguez in Camden, New Jersey.