Clemtex Silica Claims to Be Paid Out of $43.7 Million Trust, Reorganization Plan States

CORPUS CHRISTI, Texas - Bankrupt silica defendant Clemtex, Inc., has filed a First Amended Disclosure Statement and Plan of Reorganization in federal bankruptcy court outlining parameters for how all pending and future silicosis claims will be resolved by the debtor. In Re Clemtex, Inc., No. 01-21794 (S.D. Texas, Bankr.).

The documents were filed April 28 in U.S. Bankruptcy Court for the Southern District of Texas and provide for a specific claims resolution procedure that will funnel silica-related personal injury claims into a trust currently funded by approximately $43 million from insurance recoveries and about $700,000 from an 'Acquiring Entity.'

According …