2nd
October 2008 - Cooper
Industries Pleased with Pneumo-Abex Asbestos Decision
Cooper Announces Decision
by the Court Presiding Over the Federal-Mogul Bankruptcy on
Pneumo-Abex's Participation in Federal Mogul's 524(g) Trust
Cooper Industries, Ltd. has
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.
Source: Cooper Industries Press Release