Bankruptcy Pay$: How Asbestos Companies are Fairing Under Chapter 11

To paraphrase the old saying, never let the facts get in the way of passing a lousy bill. Take for example, the Asbestos Injury Resolution Act (S. 1125). One of the leading arguments in favor of the bill is that many asbestos companies have filed for bankruptcy, thus putting jobs at risk. However, a closer look at how some of these companies are faring reveals a far different picture:

Company (Date of Bankruptcy filing)

Total Annual Sales Through Sept, 2003

Annual Sales for Same Time Period Prior to Bankruptcy

# of Employees at time of Chapter 11 filing

# of Employees at Present

Armstrong (12/6/00)

$2.4 billion[1]

$2.4 billion[2]

15,400[3]

16,500[4]

W.R. Grace (4/6/01)

$1.4 billion[5]

$1.2 billion[6]

6,300[7]

6,200[8]

Federal-Mogul (10/1/01)

$4.2 billion[9]

$4.1 billion[10]

47,700[11]

47,700[12]

Owens Corning (10/5/00)

$3.7 billion[13]

$4.9 billion[14]

18,000[15]

18,000[16]

US Gypsum (6/25/01)

$2.7 billion[17]

$2.4 billion[18]

14,300[19]

14,100[20]

US Gypsum and NASCAR!?!?

Now, as if all of this weren't enough, we have to ask one final question: If a company is in Chapter 11 bankruptcy, how on earth can it possibly sponsor its own NASCAR Winston Cup car?

Don't know? Neither do we. But check out US Gypsum's special NASCAR section of its Web site, proudly highlighting all of its NASCAR Winston Cup and Dodge Series sponsorship activities: http://www.usg.com/nascar/

[1] "Armstrong Reports Third Quarter 2003 Results," Armstrong Press Release, 10/31/03.

[2] "Armstrong Announces Third-Quarter Earnings…," Armstrong Press Release, 10/23/00.

[3] Armstrong 2000 and 2002 Annual Reports on Form 10-K.

[4] http://www.armstrong.com/corporatena/index.html.

[5] "Grace Reports Third Quarter Financial Results," Grace Press Release, 10/23/03.

[6] "Grace Reports Third Quarter Operating Results," Grace Press Release, 10/24/01.

[7] Grace 2000 and 2002 Annual Reports on Form 10-K.

[8] http://www.grace.com.

[9] "Federal-Mogul Announces Third Quarter 2003 Results," Federal Mogul Press Release, 10/21/03.

[10] "Federal-Mogul Reports Third Quarter Results," Federal-Mogul Press Release, 11/14/01.

[11] 2001 and 2002 Annual Reports on Form 10-K.

[12] Ibid.

[13] "Owens Corning Reports Third Quarter 2003 Results," Owens Corning Press Release, 11/7/03.

[14] "Owens Corning Reports Fourth Quarter and Full Year, 2000 Results," Owens Corning Press Release, 1/24/01.

[15] 2000 and 2002 Annual Reports on Form 10-K.

[16] Ibid.

[17] "USG Corporatin Reports Third Quarter 2003 Results," USG Press Release, 10/24/03.

[18] "USG Corporation Reports Third Quarter Net Sales…," USG Press Release, 10/25/01.

[19] 2002 Annual Report on Form 10-K.

[20] Ibid.

-- provided by the American Trial Lawyers Association, March 25, 2004

*** POSTED MARCH 26, 2003 ***