Three Automakers Object to Federal-Mogul's Plan to Emerge from Bankruptcy

Three Automakers Object to Federal-Mogul’s Plan to Emerge from Bankruptcy

Ford Motor Co., DaimlerChrysler Corp. and a Volkswagen AG unit have raised objections to Federal-Mogul’s plan to emerge from bankruptcy protection. According to a recent report from the Detroit Free Press, the three carmakers filed objections a Wilmington, DE, Bankruptcy Court regarding Federal-Mogul’s plan to shed liability for as much as $9.41 billion in death and injury claims involving asbestos.

DETROIT – Ford Motor Co., DaimlerChrysler Corp. and a Volkswagen AG unit have raised objections to Federal-Mogul’s plan to emerge from bankruptcy protection. According to a recent report from the Detroit Free Press, the three carmakers filed objections a Wilmington, DE, Bankruptcy Court regarding Federal-Mogul’s plan to shed liability for as much as $9.41 billion in death and injury claims involving asbestos.

According to the Free Press, the carmakers asked Judge Judith K. Fitzpatrick to reject Federal-Mogul’s reorganization plan because it allows two non-bankrupt companies to shift their asbestos troubles to a victims’ trust fund being set up by Federal-Mogul. Pneumo Abex LLC and Cooper Industries LLC aren’t entitled to the benefits of the trust, which include protection against asbestos lawsuits, according to the carmakers’ filings.