Coltec Industries Inc. manufactures and distributes aerospace and industrial products in the United States, Canada, and Europe. It engages in manufacturing landing gear systems and aircraft flight controls the provision of overhaul services for these systems and controls for Canadian and other customers, and the manufacture of turbine components and turbine and compressor rotating parts primarily for aircraft gas turbine engines. It also offer seals, gasketing material, packings, and truck products; and marketing parts for Fairbanks Morse diesel engines and accessories, and other products for use in Canada and other countries. Coltec Industries Inc. was formerly known as Colt Industries Inc....
5605 Carnegie Boulevard
Charlotte, NC 28209
Founded in 1911
EnPro Industries Inc, Garlock Sealing Technologies LLC, Garrison Litigation Management Group Ltd, Coltec Industries Inc and Garlock of Canada Sign Definitive Settlement Agreement for Canadian Asbestos Claims
Nov 21 16
EnPro Industries Inc. signed a definitive settlement agreement to resolve current and future asbestos claims with workers' compensation boards, for each of the ten Canadian Provinces (the provincial boards). This agreement resolves all claims against the company and some of its subsidiaries, Garlock Sealing Technologies LLC (GST), Garrison Litigation Management Group Ltd, Coltec Industries Inc. and Garlock of Canada Ltd. (together, the EnPro parties). As per this agreement, the EnPro parties will partly recover amounts the provincial boards have paid and will pay in the future, under Canada's asbestos-injury recovery statutes. Besides, an agreement for the resolution of these Canadian claims was a condition to the company, Coltec and GST's obligations to proceed with the March 2016 comprehensive settlement (the comprehensive settlement) reached with the court-appointed committee representing current asbestos claimants, the court-appointed legal representative of future asbestos claimants in GST's asbestos claims resolution process pending in the US Bankruptcy Court for the Western District of North Carolina (the bankruptcy court) and representatives for current and future asbestos claimants against Coltec. As per the settlement, a modified joint plan of reorganisation (Joint Plan) has been filed by GST and Coltec with the Bankruptcy Court and 9 December 2016 has been set as the deadline for asbestos claimants to vote on approving the same. The settlement agreement provides for an aggregate cash payment of USD 20 million to the provincial boards that will be paid on the fourth anniversary of the effective date of the Joint Plan. After that date, the provincial boards may optionally accelerate the payment, in which case the payable amount will be discounted from the fourth anniversary of the effective date of the Joint Plan till the payment date, at an annual 4.5% rate. This is consistent with the present value estimate of about USD 17 million before tax, as committed for the resolution of these claims. In return, the provincial boards each agreed to release EnPro, any of its affiliates and the settlement trust to be established under the Joint Plan from any present or future liability of asbestos-related claims by the boards and to provide a covenant not to sue EnPro, any of its affiliates or the settlement trust regarding any such claims, among other protections. Finally, the company said that the settlement agreement will not become effective unless the Bankruptcy Court signs an order approving it or concluding that the court's approval is not needed for the EnPro parties to the agreement that are not debtors under the Joint Plan to enter into and consummate the settlement agreement. Further, the agreement is not binding on any of the EnPro parties unless and until the effective date of the Joint Plan occurs.