Insulation Co. Files Pre-Packaged Asbestos Bankruptcy Plan

BIRMINGHAM, Ala. - An Alabama-based insulation company named in approximately 80,000 asbestos lawsuits has filed a so-called, pre-packaged plan of reorganization in federal bankruptcy court in an effort to resolve its asbestos liabilities. In Re: Shook & Fletcher Insulation Co., No. 02-02771 (N.D. Ala. Bankr.).

Shook & Fletcher Insulation Co. filed their plan April 8 in the U.S. Bankruptcy Court for the Northern District of Alabama.

The pre-packaged reorganization plan calls for the establishment of a trust, funded by the company and its insurers and overseen by a trustee who will determine if future claims merit compensation.

Shook & Fletcher …