"We are very pleased with this decision. The court ruling is a further vital step towards a final resolution of the asbestos issue." said Fred Kindle, ABB President and CEO.
The Bankruptcy Court's confirmation and recommendation for affirmation to the District Court follows a vote by asbestos claimants, which was completed in September 2005, in which they overwhelmingly approved the plan of reorganization, and a confirmation hearing by the Bankruptcy Court at which all objections to the plan were withdrawn. The parties have ten days in which to appeal against the judge's order.
The plan's channelling injunction, which will protect ABB and its subsidiaries against current and future claims, still has to be affirmed by the District Court. ABB expects the District Court hearing to be held soon. If the District Court approves the plan, there will be a 30-day appeals period. If no appeals are lodged, the plan is final.
Under the plan, ABB has committed $1.43 billion for a trust fund for claims against CE.
The ABB Lummus Global pre-packaged plan of reorganization, which received a 96 percent favourable vote in a pre-filing solicitation, is still pending.