EnPro announces District Court approval of joint reorganization plan
EnPro Industries announced that on June 12, 2017 the U.S. District Court for the Western District of North Carolina entered an order confirming the joint plan of reorganization of certain of EnPro's subsidiaries, including Garlock Sealing Technologies LLC, to resolve their current and future asbestos claims. The District Court's decision follows a hearing before the District Court held on June 12, 2017, following the recommendation for confirmation of the Joint Plan made by the U.S. Bankruptcy Court for the Western District of North Carolina after a hearing held by it on May 12, 2017. All remaining objections to the Joint Plan pending at the time of the Bankruptcy Court's hearing had been resolved prior to the hearing before the District Court and no new objections were raised at the District Court's hearing. The Joint Plan may not be consummated until at least 40 days after the date the District Court issues its order confirming the Joint Plan. EnPro anticipates that, absent any appeals, the Joint Plan will be consummated on or about July 29, 2017. The District Court also approved several settlements with insurance carriers that issued policies covering losses associated with product liability claims against Coltec and certain of its subsidiaries, as had been recommended by the Bankruptcy Court following its May 12 hearing. In addition, the District Court approved a settlement, reached after May 12, with the successors to Coltec's Fairbanks Morse Pump business in which the Fairbanks Morse Pump successors agreed to pay OldCo $6 million in three installments over nine years following consummation of the Joint Plan. The successor entities are entitled to recoup up to the full amount of their payments to OldCo from collections expected to be received from an additional insurance carrier that issued general liability policies to Coltec prior to January 1, 1976. OldCo and the asbestos trust to be established under the Joint Plan will share equally in any collections above that $6 million amount. OldCo estimates that the carrier will owe approximately $11 million in reimbursements over the life of the asbestos trust for its share of Coltec claims.