29
2011
Rust-Oleum Maker to Set Up Asbestos Bankruptcy Trust
Two subsidiaries of RPM International Inc., makers of Rust-Oleum and other specialty paints, filed for bankruptcy last year due to a large amount of asbestos related cases. SpecialtyProducts and Bondex both filed for bankruptcy last year facing about 15,000 asbestos cases, at the time of bankruptcy about 10,000 of the cases were active in courts around the United States. Additionally, Bondex has admitted in court papers that they sold asbestos-tainted products from 1966-1977.
Asbestos is the only known cause for an incurable form of cancer known as mesothelioma, in addition to several forms of lung cancer and asbestosis. The asbestos fibers are inhaled and lodge themselves in the lining of the lungs, over time these fibers cause scarring and can eventually lead to cancer.
The parent company, RPM International Inc. undertands that they will have to contribute an unspecified amount of money into an asbestos trust in order to avoid future asbestos lawsuits. The sum of money will be determined through negotiations with lawyers who represent asbestos victims. The trust will have to be court approved per the US Bankruptcy Court.
