Defunct iconic tire brand files Chapter 11 bankruptcy to dissolve

The descendant of a once-leading tyre and rubber company, Uniroyal Holding Inc., is winding up its operations, and its iconic marque sanction volition soon vanish arsenic a functioning entity.

Uniroyal Holding Inc., which was a subsidiary of the erstwhile Uniroyal tyre company, filed for Chapter 11 bankruptcy extortion to fulfill each idiosyncratic wounded and wrongful decease claims related to asbestos successful products, settee remaining status benefits of erstwhile employees, and supply a organisation of assets to creditors.

The Naugatuck, Conn., debtor listed $10 cardinal to $50 cardinal successful assets and $50 cardinal to $100 cardinal successful liabilities successful its petition filed successful the U.S. Bankruptcy Court for the District of New Jersey connected July 31.

Uniroyal faces 1000s of asbestos claims

Uniroyal Holdings listed 30 instrumentality firms successful the petition that had filed the astir asbestos litigation cases against the debtor, though each amounts connected the unsecured asbestos claims were categorized arsenic undetermined.

Asbestos claims ranged from a precocious of 22,754 cases from Weitz & Luxenberg to a debased of 32 cases from Wallace & Graham P.A.

Since Uniroyal Holdings' enactment implicit 41 years ago, 516,656 idiosyncratic wounded and wrongful decease claims were filed against the institution with the suspect resolving 216,994 cases and making conscionable nether $500 cardinal successful payments, according to tribunal documents.

Another 264,232 claims were dismissed, leaving implicit 35,000 pending cases.

Claims becoming unmanageable

"For the past 40 years, Uniroyal has successfully settled oregon defended claims against it and managed its liabilities, but the sheer fig of asserted litigation claims is monolithic and volition rapidly go unmanageable upon status of the existent Uniroyal worker squad that has actively directed and coordinated this effort," Uniroyal Holding President and General Counsel Robert V. D'Angelo said successful a tribunal declaration.

Uniroyal Holdings filed the bankruptcy lawsuit with a projected consensual associated Chapter 11 plan, on with subsidiary Great Hill Corporation, to fulfill each non-personal wounded and wrongful decease claims against the debtors, found a colony spot to assume, administer, and resoluteness each contiguous and aboriginal idiosyncratic wounded and wrongful decease claims against the debtors, and dissolve the debtors.

Great Hill Corporation is the beneficiary of a $2.48 cardinal intercompany enactment with a maturity day of July 20, 2028.

Company has 140 retirees successful program

The fig of participants successful the retiree payment program has declined from astir 10,000 beneficiaries erstwhile the debtor was established successful 1985 to 140 retirees presently with an mean property of 92.