Federal-Mogul’s British Pension Trustees Reject Rescue Plan
The trustees of the British pension fund of bankrupt U.S. auto parts maker Federal-Mogul, with 37,000 members, said they have been forced to vote against a rescue plan for the scheme as they consider new proposals from the United States. The proposed plan by Federal-Mogul Corp. for the fund of United Kingdom subsidiary Turner & Newall, had not been adjusted to include a new offer led by U.S. financier Carl Icahn, the largest holder of the company’s debt, in October, they said.
Federal-Mogul Plan Can Be Rejected, Court Says
Southfield, Mich.-based Federal-Mogul Corp.’s reorganization plan can be rejected by the pension trustees of its British unit, a London court ruled Tuesday.
Federal-Mogul Seeks Citigroup Loan OK: $1.93 Billion May Keep Parts Maker Afloat
Federal-Mogul Corp. is asking a U.S. bankruptcy judge for permission to borrow as much as $1.93 billion from Citigroup Inc. to help fund its reorganization.
Federal-Mogul Changes its Plan, Shareholders to Be Offered New Stock
Federal-Mogul Corp. has amended its plan for emerging from bankruptcy to guarantee current shareholders the right to buy new shares in the reorganized auto supplier at a predetermined price. Under both the former and amended plans, current shares would be voided once the company exits bankruptcy and new shares would be issued. In an unrelated matter, Federal-Mogul announced Friday that a fire had extensively damaged its Smithfield, Tenn., distribution facility. All employees were evacuated safely. The company is working on a plan to resume operations elsewhere late this week. The center employed 225.
Federal-Mogul Files Disclosure Statement in Bankruptcy Case
Federal-Mogul has filed a disclosure statement and an amended plan of reorganization with the U.S. Bankruptcy Court in Delaware. Inundated with lawsuits from people claiming exposure to asbestos from products made by companies that Federal-Mogul later bought, the company filed for bankruptcy court protection in October 2001. The company has been working on plans to emerge later this year, under the control of a trust established to handle the asbestos claims.