Federal-Mogul Corporation

The Flexitallic Group purchased assets from a corporate predecessor of Federal-Mogul. Some of those assets had been used in the manufacture of asbestos containing products prior to their purchase by Flexitallic. Federal Mogul was in bankruptcy because it was being sued for billions of dollars of asbestos liability. Flexitallic was named in some of those lawsuits even though it had never manufactured a product using asbestos in the US. The Bankruptcy Code section 524(g) provides for third parties to obtain permanent injunctions from asbestos liability that it derivative of that of the debtor in certain circumstances. After over seven years of work, Flexitallic was able to obtain this permanent injunctive relief.

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