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ABB to Reorganize Subsidiaries to Settle Asbestos Claims

Source: ABB
Published: March 22, 2005

ABB said Monday that it has reached an agreement to reorganize Combustion Engineering (CE) and ABB Lummus Global to resolve the asbestos claims against both companies.

The amended agreement requires ABB to contribute an additional $232 million to the trust fund that will pay all outstanding asbestos claims. This contribution will be derived from the sale of ABB Lummus Global assets within two years of the plan's effective date or by a direct contribution from ABB, the company said in a statement.

"I am pleased that the cooperative efforts of the parties involved have resulted in a commonly agreed proposal for an amended plan in this short period of time," said Fred Kindle, ABB President and CEO. "This agreement is a vital step towards a final resolution of our asbestos issue."

ABB said the parties intend to cooperate to produce an amended plan of reorganization expeditiously, with a view to prompt confirmation by the bankruptcy court.

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