Cooper Announces Decision by the Court Presiding Over the Federal-Mogul Bankruptcy on Pneumo-Abex's Participation in Federal Mogul's 524(g) Trust

October 1, 2008 9:11 AM EDT

HOUSTON--(BUSINESS WIRE)--

Cooper Industries, Ltd. (NYSE: CBE) today announced that the U.S. Bankruptcy Court for the District of Delaware has not approved the Plan A settlement whereby the Pneumo-Abex asbestos claims would be settled through the Federal Mogul Corp. ("FMC") Asbestos Trust. The Court had previously approved Plan B whereby Cooper will receive $138 million from the Federal Mogul bankruptcy estate and will continue to resolve through the tort system the asbestos-related claims arising from the Abex Friction Products business that it had sold to FMC in 1998. Additionally, under Plan B, Cooper has access to Abex insurance policies with substantial remaining limits on policies with solvent insurers.

"The total cost of Plan A increased over time and Cooper would have paid a significant premium under Plan A. We have also gained experience in dealing with the claims since this issue first emerged in 2001 and we are well positioned to manage these claims similar to many other companies," said Cooper Industries Chairman and Chief Executive Officer Kirk S. Hachigian. "We are pleased that the decision has been made and can now move forward."

Further details regarding the financial impact of this decision will be reflected in Cooper's Third Quarterly report on form 10-Q filed with the Securities and Exchange Commission.

About Cooper Industries

Cooper Industries, Ltd. (NYSE: CBE) is a global manufacturer with 2007 revenues of $5.9 billion, approximately 87% of which are from electrical products. Founded in 1833, Cooper's sustained level of success is attributable to a constant focus on innovation, evolving business practices while maintaining the highest ethical standards, and meeting customer needs. The Company has eight operating divisions with leading market share positions and world-class products and brands including: Bussmann electrical and electronic fuses; Crouse-Hinds and CEAG explosion-proof electrical equipment; Halo and Metalux lighting fixtures; and Kyle and McGraw-Edison power systems products. With this broad range of products, Cooper is uniquely positioned for several long-term growth trends including the global infrastructure build-out, the need to improve the reliability and productivity of the electric grid, the demand for higher energy-efficient products and the need for improved electrical safety. In 2007, sixty percent of total sales were to customers in the industrial and utility end-markets and 34% of total sales were to customers outside the United States. Cooper, which has more than 31,500 employees and manufacturing facilities in 23 countries as of 2007, is incorporated in Bermuda with administrative headquarters in Houston, TX. For more information, visit the website at www.cooperindustries.com.

Source: Cooper Industries, Ltd.

Related Categories

Press Releases

Stocks Mentioned

Add Your Comment

Name

Subject

Body

Verification can't see the text?
click here to refresh the image.
what's this?