ABB » Topics » Asbestos

This excerpt taken from the ABB 20-F filed Apr 18, 2007.

Asbestos

An overview of our potential asbestos-related obligations is included separately in “Contingencies and retained liabilities” below, as well as in Note 17 to our Consolidated Financial Statements.

This excerpt taken from the ABB 6-K filed Feb 20, 2007.
Asbestos

In 2006, the Plans of Reorganization of ABB’s U.S. subsidiaries Combustion Engineering (CE) and ABB Lummus Global (Lummus) became effective following final court approvals. As a result, any future asbestos personal injury claims against those and other ABB entities related to the operations of CE and Lummus will be channeled to the specially-created Personal Injury Trusts set up under the relevant Plans of Reorganization.

This excerpt taken from the ABB 6-K filed Oct 27, 2006.

Asbestos

In April 2006, following the resolution of Combustion Engineering’s asbestos liabilities, ABB Lummus Global Inc., another U.S. subsidiary, filed a separate asbestos-related pre-packaged Plan of Reorganization under Chapter 11 of the U.S. Bankruptcy Code. The Lummus Plan of Reorganization became final and effective on Aug. 31, 2006.

This excerpt taken from the ABB 6-K filed Jul 28, 2006.

Asbestos

ABB’s Plan of Reorganization for Combustion Engineering (CE), an ABB subsidiary in the U.S., was confirmed by the U.S. District Court for Delaware on March 1, 2006 and made effective on April 21, 2006. Further details on the impact of this step on ABB’s consolidated financial statements can be found in Appendix I.

On April 21, 2006, ABB also filed a separate asbestos-related pre-packaged Plan of Reorganization for another U.S. subsidiary, ABB Lummus Global Inc., with a U.S. Bankruptcy Court. The Lummus Plan was confirmed by the Bankruptcy Court on June 29 and subsequently affirmed by the District Court on July 21,2006. Assuming there are no appeals, the Lummus Plan should become final by the end of August 2006.

This excerpt taken from the ABB 6-K filed Apr 28, 2006.

Asbestos

ABB’s Plan of Reorganization for Combustion Engineering (CE), an ABB subsidiary in the U.S., was confirmed by the U.S. District Court for Delaware on March 1, 2006. The confirmation order and the Plan of Reorganization, which stipulates the establishment of an independent trust to address present and future asbestos claims, became final on March 31, 2006.

 

On April 20, 2006, ABB transferred assets – including approximately 30 million ABB shares, insurance receivables, and promissory notes – into the Asbestos Personal Injury Trust. The Plan was made effective on April 21, 2006. Further details on the expected impact on ABB’s consolidated financial statements due to the Plan having been made effective are presented in Appendix I on page 8 of this press release.

 

On April 21, 2006, ABB also filed a separate asbestos-related pre-packaged Plan of Reorganization for another U.S. subsidiary, ABB Lummus Global Inc., with a U.S. Bankruptcy Court. In September 2005, claimants against Lummus voted 96 percent in favor of the plan.

 

This excerpt taken from the ABB 20-F filed Apr 19, 2006.

Asbestos

An overview of our asbestos-related obligations is included separately in “Contingencies and retained liabilities” below, as well as in Note 17 of the Consolidated Financial Statements.

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This excerpt taken from the ABB 6-K filed Feb 17, 2006.

Asbestos

ABB announced on February 9, 2006, that a U.S. District Court judge set the hearing for the revised Plan of Reorganization for Combustion Engineering (CE), an ABB subsidiary in the U.S., for February 28, 2006. The judge indicated that, if no objections were filed by February 21, 2006, he intended to issue a confirmation order on February 28 for the plan, which is aimed at settling CE’s asbestos liabilities. The judge’s decision would be followed by a 30-day appeals period, after which – assuming no appeals were filed – the plan could be made effective.

 

The consolidated provision at December 31, 2005, related to asbestos matters in the U.S. was $1,128 million, a net increase of $105 million from December 31, 2004. The increase is due to the revaluation of ABB shares reserved to cover asbestos liabilities.

 

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In September 2005, claimants to a parallel asbestos-related Plan of Reorganization for another U.S. subsidiary, ABB Lummus Global Inc., voted 96 percent in favor of the Lummus plan. That plan has not yet been filed with the Bankruptcy Court for review.

 

This excerpt taken from the ABB 6-K filed Oct 28, 2005.
Asbestos

 

Following a hearing on September 28, 2005, before the U.S. Bankruptcy Court in Pittsburgh, Pennsylvania, ABB and all other parties filed with the court a consensual proposed confirmation order with respect to the Combustion Engineering revised plan of reorganization. The revised plan is based on an agreement in March 2005 with various asbestos claimants, and was subsequently approved in a vote by more than 95 percent of claimants.

 

The company is currently awaiting the issuance of the confirmation order by the Bankruptcy Court.

 

In a parallel asbestos-related process, claimants to a pre-packaged Plan of Reorganization for another U.S. subsidiary, ABB Lummus Global Inc., participated in a preliminary vote, which was completed in September 2005 with 96 percent of claimants voting in favor of the plan.

 

This excerpt taken from the ABB 6-K filed Jul 28, 2005.
Asbestos

 

On March 21, 2005, ABB announced that it had reached agreement on certain settlement points that would form the basis for revised plans of reorganization for its U.S. subsidiaries, Combustion Engineering (CE) and ABB Lummus Global Inc., to resolve the asbestos claims of both companies following the U.S. Third Circuit Court of Appeals decision of December 2, 2004.

 

A revised CE Plan of Reorganization was filed with the U.S. Bankruptcy Court in Pittsburgh, Pennsylvania, on June 24, 2005. A hearing on the plan’s Disclosure Statement before the Bankruptcy Court is scheduled for August 19, 2005, after which the plan will be submitted to claimants for a vote of approval. ABB continues to work with the various parties to the settlement points in an effort to resolve all of the issues in a timely manner.

 

This excerpt taken from the ABB 20-F filed May 27, 2005.

Asbestos

        Loss from discontinued operations, net of tax, includes costs and provisions related to asbestos-related claims, including those against our U.S. subsidiary, Combustion Engineering Inc., of approximately $262 million, $142 million and $395 million in 2004, 2003 and 2002, respectively.

        An overview of our potential asbestos-related obligations is included separately in "Contingencies and retained liabilities."

This excerpt taken from the ABB 6-K filed Apr 29, 2005.

Asbestos

 

On March 21, 2005, the Company announced that it had reached agreement on certain “settlement points” that would form the basis for an amended plan of reorganization for its U.S. subsidiaries, Combustion Engineering (CE) and ABB Lummus Global Inc., to resolve the asbestos claims of both companies. The agreement for modifying the CE Plan is intended to bring it into conformity with the U.S. Third Circuit Court of Appeals decision of December 2, 2004.

 

The agreement requires the Company to contribute an additional amount of approximately $232 million to pay present and future asbestos claimants of CE and ABB Lummus Global Inc. This additional amount, as well as some related adjustments, was accounted for in the full-year 2004 results published on April 22 of this year in the Company’s annual report.

 

In a status conference on April 5, 2005, a U.S. bankruptcy court instructed the Company to submit the documentation relating to the modified CE plan and the ABB Lummus Global plan to the court within approximately 60 days. The Company and various other interested parties are now working to prepare these submissions to the court.

 

Management believes that it is probable that the full amount of the relevant provisions will be required to settle the respective asbestos-related liabilities of Combustion Engineering, Lummus and Basic. The Company may incur liability greater than the existing provisions, whether in connection with a modified plan of bankruptcy or otherwise, but management does not believe that the amount of any such incremental liability can be reasonably estimated or that there is a better estimate of these liabilities than the amounts that are provided for.

 

The ultimate outcome of the Company’s efforts to resolve the asbestos-related personal injury claims against Combustion Engineering and other entities of the Company (including any such claims against third parties indemnified by entities of the Company) remains uncertain. The related costs may be higher than the Company’s provisions reflect and could have a material adverse impact on its consolidated financial position, results of operations and cash flows. In the event the modified CE plan or Lummus plan do not become effective, the ultimate cost for the resolution of asbestos related personal injury claims against Combustion Engineering and Lummus may be significantly higher and could have a material adverse impact on the Company’s consolidated financial position, results of operations and cash flows.

 

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This excerpt taken from the ABB 6-K filed Feb 17, 2005.

Asbestos

On December 2, 2004, the U.S. Third Circuit Court of Appeals reversed confirmation of ABB’s Chapter 11 Plan of Reorganization for its U.S. subsidiary, Combustion Engineering (CE).

 

The Circuit court said that for the plan to be confirmed, the lower courts would need to develop a fuller record that the CE Settlement Trust (set up to fund and administer the payment of settled asbestos claims filed against CE prior to November 2002) and the two-trust structure on which the Plan was based, were designed and implemented in a manner consistent with the Bankruptcy Code.

 

The Circuit court also found that it was not appropriate to include in the CE Plan certain asbestos claims against ABB Lummus Global Inc. and Basic Incorporated. not related to the operation of CE. ABB is currently reviewing mechanisms to deal with the asbestos exposure of these two companies, which is small compared to that of CE. There are currently about 11,000 asbestos claims against ABB Lummus Global Inc., which have been provided for.

 

ABB continues to review the Court of Appeals’ opinion and to consider various options to resolve the asbestos liability of CE, ABB Lummus Global Inc. and Basic Incorporated. Among other things, ABB is considering whether changes to the CE Plan could be made and has begun discussions with various parties. ABB remains committed to resolving all outstanding issues in a timely manner but cannot at this point in time predict when a resolution will be achieved nor what financial impact it might have.

 

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