Deadline for Claims Against Federal-Mogul Announced

Federal-Mogul shareholders and officers will know where they stand regarding asbestos and non-asbestos related claims against the company by next March, following court rulings.
The United States Bankruptcy Court for the District of Delaware has established March 3, 2003 at 4:00 p.m. Eastern Time as the last date and time, called the General Bar Date, by which claims other than asbestos-related personal injury claims may be filed against Federal-Mogul Corporation and those of its U.S. subsidiaries that have commenced Chapter 11 cases. This ruling follows a previous one that set the same deadline for asbestos-related claims to be filed.
All entities, including governmental units, that wish to assert any claims against the U.S. Debtors other than asbestos-related personal injury claims are required to file proofs of claim on or before the March deadline.
The General Bar Date applies to all General Claims, which are claims of any kind against the company that arose before October 1, 2001, except asbestos-related personal injury claims and asbestos-related property damage claims. Parties wishing to assert claims against any of the Debtors on account of asbestos exposure of a party other than the claimant (other than the claims of a spouse or the executor of a decedent’s estate), including contribution claims, indemnity claims, reimbursement claims, subrogation claims or cross-claims, must file proofs of claim on account of such claims by the General Bar Date. The Court has also previously established March 3, 2003 at 4:00 p.m. as the last date and time by which asbestos-related property damage claims may be asserted against the Debtors, using a specialized proof of claim form available from the Debtors’ claims agent.
The institution of a deadline could end a long road for the multinational auto parts manufacturer which has been dogged by seemingly endless claims against it, most as a result of companies it acquired over the past 10 years. Federal-Mogul filed for Chapter 11 protection as a way to limit its liability, or at least set a date after which it could move forward. This latest announcement indicates that this is now in the offing.