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Rapid-American Succumbs To Bankruptcy As A Result of Asbestos Claims

philip-carey-manufacturing.gifRapid American Company is a New York based company and formerly acted as a holding company for McCrory variety stores. The company never actually manufactured asbestos, but thanks in no small part to a series of acquisitions beginning with Philip Carey Manufacturing Co., Rapid American Company currently faces approximately 275,000 personal injury claims totaling an estimated $100 million in liabilities – specifically asbestos litigation.

Phillip Carey Manufacturing Corporation was established in Ohio in 1888. The company originally mined asbestos and manufactured various asbestos containing products. After multiple changes of ownership and name, the corporation eventually merged with Rapid American in 1972. Now Rapid American has found themselves facing a plethora of lawsuits as a result of the multitude of individuals who were exposed to the asbestos containing building products manufactured by Phillip Carey. Although there are actually fewer claims filed now than in previous years, the number of mesothelioma claims have increased. The increase in mesothelioma claims inevitably results in an increase in the settlement value / amount. The increase in claim value and decline in insurance coverage have left the company in a pecuniary quandary.

The financial burden of the pending claims, which now rests upon Rapid American, has resulted in the filing of a chapter 11 bankruptcy [In Re Rapid-American Corp., 13-10687, U.S. Bankruptcy Court, Southern District of New York (Manhattan)]. The company listed $86.9 million in assets. They did not immediately specify indebtedness, but as required by law, did produce the list of top 20 to which they are indebted.

On the list of THE 20 LAW FIRMS THAT REPRESENT CLIENTS WITH,COLLECTIVELY, THE LARGEST UNPAID SETTLEMENT AMOUNTS is the name Reyes, O’Shea & Coloca, P.A. having more than $850,000.00 in pending claims. If you, or someone you love has been diagnosed with mesothelioma or any asbestos related disease, you have rights. We specialize in fighting for the victims of asbestos exposure. Contact us for a free consultation.

Defendants have been filing bankruptcy since Manville created the first asbestos bankruptcy trust in 1988 and the banruptcy trust system has been evolving ever since. Over ninety (90) companies have sought protection in the bankruptcy courts as a result of the multitude of asbestos cases. Submission requirements have become more stringent and the payment percentages have become less. Understanding the current trends and information provided by the trusts and the various news genres that intend to offer their own interpretations have become increasingly more difficult to decipher.

medical reference books.jpgREFERENCES:

BLOOMBERG: Rapid-American Files Bankruptcy Citing Asbestos Liability
Lexis Nexis: Asbestos Injury Claims, Dwindling Insurance Force Rapid-American Into Bankruptcy