"In a complex bankruptcy case involving forecasting of future liabilities, the Court looks for the most credible and objective economic analysis and testimony in order to form its opinion”, John Brophy, Partner at ARPC.
Washington, DC (PRWEB) May 30, 2013
ARPC, a business advisory consulting firm offering economic, financial, statistical, and operational expertise to clients facing legal and business challenges, announced that Dr. Thomas Vasquez, ARPC Partner, provided expert testimony in the Chapter 11 Bankruptcy proceedings related to Bondex International, a subsidiary of Specialty Products Holdings.
In the Bankruptcy hearings, testimony was provided by experts on behalf of the debtors, the existing mesothelioma plaintiffs, and the Future Claimants Representative regarding the estimated future liability for mesothelioma claims. Dr. Vasquez provided analysis and testimony on behalf of the Future Claimants Representative. On May 20, 2012, the opinion of Judge Judith K. Fitzgerald of the United States Bankruptcy Court for the District of Delaware affirmed the liability estimate provided by Dr. Vasquez of $1.1 billion, calling the methodology and resulting estimate he used “persuasive” and was the one adopted by the Court.
According to court documents, until 1977, Bondex International Ltd. produced a joint compound containing asbestos, which has been linked to mesothelioma and other respiratory ailments. The first mesothelioma lawsuits were filed against Bondex in 1980 (Case Nos. 08-4735; 09-3091), and the number of cases increased steadily over time until the company sought bankruptcy protection in 2010 in order to enable its’ parent company to set up a bankruptcy trust under Section 524(g) of the Bankruptcy Code to deal with the asbestos claims [1 ]. To determine the amount necessary to adequately fund the proposed bankruptcy trust required an estimate of the liability from current and future claims.
"In a complex bankruptcy case involving forecasting of future liabilities, the Court looks for the most credible and objective economic analysis and testimony in order to form its opinion”, said John Brophy, Partner at ARPC. “We consider the Court’s adoption of the methodology and conclusions of Dr. Vasquez to be the best outcome for our client and a validation of our analytical objectivity”, Brophy said.
The case is In re: Specialty Products Holding Corp., case No. 1: 10-bk-11780, in the U.S. Bankruptcy Court for the District of Delaware.
1. In re: Specialty Products Holding Corp., case No. 1: 10-bk-11780, in the U.S. Bankruptcy Court for the District of Delaware: http://articles.law360.s3.amazonaws.com/0172000/172196/bondex%20cmpt.pdf
ARPC is an economic and management consulting firm that provides statistical, econometric and financial analysis to clients facing complex legal and business challenges. For over 40 years, ARPC’s consultants have assisted law firms, corporations, governments and non-profit organizations in addressing their most serious economic and financial concerns in the courtroom, board room and marketplace. ARPC provides expert services in a wide variety of cases involving mass torts and product liability, antitrust, intellectual property, securities litigation, bankruptcy, and settlement administration. Our consulting depth includes a staff of highly skilled specialists with strong credentials in economics, finance, statistics, engineering, and epidemiological modeling. The Company headquarters are located in Washington, D.C. For more information, visit http://www.arpc.com
Media Contact: Ran Farmer, ARPC. (w) 202 797 1111 R(dot)Farmer(at)arpc(dot)com