Date: 5 May 2004

WILMINGTON, Del. — A former manufacturer of building materials that ceased operation in the 1980s has filed for Chapter 11 bankruptcy protection, citing a recent spike in asbestos claims. In Re: The Flintkote Company, No. 04-11300 (D. Del., Bankr.).

Flintkote filed for bankruptcy May 1 in the U.S. Bankruptcy Court for the District of Delaware, claiming that its expenses related to asbestos claims rose to nearly $127 million in 2003, up some $70 million from three years before.

Flintkote, which at one time manufactured building, cement, limestone and stone products, ceased all manufacturing processing and distribution operations in the 1980s and has since paid in excess of $630 million in defense and settlement of approximately 350,000 asbestos claims.

When it filed for bankruptcy protection, Flintkote said it faced monthly asbestos-related expenses totaling $12 million per month.

Among its list of creditors holding the 20 largest unsecured claims against the debtor are plaintiffs’ asbestos law firms, including the Simmons Firm ($26.2 million), Waters & Kraus ($13.7 million) and Wise & Julian ($7.9 million).

Flintkote is represented by Kevin T. Lantry of Sidley, Austin, Brown & Wood in Los Angeles, and Laura Davis Jones of Pachulski, Stang, Ziehl, Young, Jones & Weintraub in Wilmington, Del.

SOURCE: HARRIS MARTIN PUBLISHING

*** POSTED MAY 28, 2004 ***