January 18 , 2006
McDermott International Inc.s proposal to reconcile up to 300,000 asbestos related injury claims through various settlements has been approved by U.S. District Judge Sarah Vance. The settlements could cost the company between $375 and $955 million in company funds. McDermott International Inc. is the owner of Babcock & Wilcox, which is the primary target for asbestos blame.
Babcock & Wilcox is known for their insulator boilers that contained the deadly asbestos. Asbestos has since been linked to serious cases of lung cancer and other severe health complications. The chemical is a known carcinogen that presents serious risks upon exposure. The company faced the threat of bankruptcy as early as February of 2000.
This issue, which is considered to be high on the Senates priority this year, could amount to $140 billion trust fund designed to compensate those individuals who have been adversely affected by asbestos. This trust fund would be developed to alleviate the multimillion-dollar lawsuits brought by people who have suffered asbestos related ailments. In exchange for the large settlements allotted through the trust fund, a ban would be placed on the lawsuits. The trust fund would be entirely funded by those companies facing asbestos backlash.
A spokesperson for McDermott has reported that a separate trust fund will be created including $1 billion in insurance payments and $350 million from McDermott directly to handle the claims specific to Babcock and Wilcox. If the bill is not passed in Congress by November 30th, McDermott will owe an additional $600 million.
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