Friday, March 8, 2013

Inherited asbestos claims strain Rapid-American Corp.

From Bloomberg News:

Rapid-American Corp. filed for bankruptcy protection in New York to deal with debt related to asbestos personal-injury claims.

Rapid-American, based in New York and formerly a holding company for McCrory variety stores, “was never engaged in an asbestos business” and inherited about 275,000 asbestos claims through a series of acquisitions, according to an account in court papers by company Vice President Paul Weiner.

“Recently, Rapid has experienced an increase in the number of mesothelioma claims being filed against it and an increase in the dollar amount sought to settle claims,” Weiner said.

Philip Carey Manufacturing Co., established in 1888, made and sold building products, some of which contained asbestos. Through a series of mergers, Rapid incurred successor liability for claims arising from exposure to asbestos-related products, according to court papers.

“Although total claims filed have declined in recent years, mesothelioma claims, which generally result in higher settlement values, now represent approximately 34 percent of newly filed claims against Rapid,” Weiner said.

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1 comment:

  1. The "inherited" statement is a joke. Rapid American and the Riklis family owned Philip Carey Manufacturing. If they "inherited" these wrongful death lawsuits, among others, (perhaps as many as one million) -- then they "inherited" Elizabeth Arden returned merchandise issues too. These double talking Riklis's and the people who work for them are disgusting.