From Automotive News via MEMA Industry News
DETROIT — Auto parts giant Federal-Mogul Corp. spent four days in bankruptcy hearings this week in Pittsburgh but was unable to gain approval of its reorganization plan this week.
The company’s bankruptcy confirmation hearings have been adjourned to July 9-10, said Robert Shannon, a partner with law firm Bell Boyd & Lloyd LLC in Chicago and a lawyer for Federal-Mogul’s shareholder committee.
Federal-Mogul’s bankruptcy case is the longest existing case in the auto industry. The company had been poised to have its reorganization plan confirmed by a U.S. bankruptcy judge this week after 5½ years of court protection.
"The hearing proceeded, witnesses were put on and various legal issues were addressed. It just didn’t conclude," Shannon said.
After the hearing on July 10, those that support or oppose the plan will be allowed to file briefs stating their case through Aug. 31, Shannon said. Final arguments are scheduled for Oct. 1.
Shannon said a settlement was reached this week with one insurer that opposes the plan but said numerous other insurers as well as three automakers continue to oppose some aspects of a trust fund that would settle asbestos claims.
"We remain fully confident that the plan of reorganization will be confirmed," said Marie Remboulis, vice president of corporate communications for Federal-Mogul. "This will be done and this plan will be confirmed. It’s a process that has to take its course."
Federal-Mogul makes a variety of engine parts, gaskets, seals and other automotive products. It filed for reorganization in both the United States and the United Kingdom on Oct. 1, 2001, to shield itself from more than 100,000 asbestos-related lawsuits. Federal-Mogul emerged from the United Kingdom’s bankruptcy process on Nov. 30, 2006.
