Uniroyal files $31.5 million asbestos trust plan at commencement
Uniroyal and subsidiary Great Hill filed a joint wind-down plan on the petition date that would transfer personal-injury and wrongful-death claims to a trust funded with a minimum $31.5 million cash payment at effectiveness, rights and proceeds under a specified settlement, insurance rights and proceeds, and retained causes of action. The minimum recovery cannot be reduced by administrative or professional-fee payments, according to the joint Chapter 11 plan.
Class 4 PI/WD claimants would be impaired, receive distributions exclusively under trust procedures, and constitute the only voting class. Secured, priority, and general unsecured claims would remain unimpaired and be paid in full or receive equivalent treatment. Intercompany claims and existing equity would be cancelled without distributions, and both debtors would wind up and dissolve. The day-one plan gives asbestos claimants an immediate recovery framework while concentrating confirmation risk in the adequacy of the trust funding, insurance assets, and Class 4 vote.