-- ASBESTOS CHANNELING INJUNCTION Clause Samples
An Asbestos Channeling Injunction is a legal provision that directs all current and future asbestos-related claims against a debtor to a specific trust established during bankruptcy proceedings. In practice, this clause prevents claimants from suing the reorganized company directly, instead requiring them to seek compensation exclusively from the trust, which is funded as part of the bankruptcy plan. The core function of this clause is to protect the reorganized entity from ongoing asbestos liabilities, ensuring that all claims are handled in a centralized and predictable manner, thereby facilitating the debtor's financial recovery and providing a streamlined process for claimants.
-- ASBESTOS CHANNELING INJUNCTION. The sole recourse of the holder of a Plan Trust Asbestos Claim or Demand on account of such Claim or Demand or of a Person that had or could have asserted an Asbestos Claim or Demand shall be to the Plan Trust pursuant to the provisions of the Asbestos Channeling Injunction, the Plan, the Plan Trust Agreement and the TDP, and such holder shall have no right whatsoever at any time to assert its Plan Trust Asbestos Claim or Demand against the Debtors, Reorganized Debtors, any other Protected Party, or any property or interest in property of the Debtors, the Reorganized Debtors, or any other Protected Party. Without limiting the foregoing, from and after the Effective Date, the Asbestos Channeling Injunction shall apply to all present and future holders of Plan Trust Asbestos Claims and Demands, and all such holders shall be permanently and forever stayed, restrained, and enjoined from taking any of the following actions for the purpose of, directly or indirectly, collecting, recovering, or receiving payment of, on, or with respect to any Plan Trust Asbestos Claims and Demands, other than from the Plan Trust in accordance with the Asbestos Channeling Injunction and pursuant to the Plan, the Plan Trust Agreement and the TDP: Debtor: Congoleum Corp., et al. Case No: 03-51524 Caption: Order Authorizing and Approving Settlement and Policy Buyback Agreement and Release Among the Congoleum Entities, the Plan Trust, the ABI Entities and the St. Paul Travelers Entities and Sale of Subject Policies Pursuan▇ ▇▇ Sections 105, 363, 1107 and 1108 of the Bankruptcy Code and Rules 2002, 6004, 9014 and 9019 of the Federal Rules of Bankruptcy Procedure
(a) commencing, conducting, or continuing in any manner, directly or indirectly, any suit, action, or other proceeding (including a judicial, arbitration, administrative, or other proceeding) in any forum against or affecting any Protected Party or any property or interests in property of any Protected Party;
(b) enforcing, levying, attaching (including any prejudgment attachment), collecting, or otherwise recovering by any means or in any manner, whether directly or indirectly, any judgment, award, decree, or other order against any Protected Party or any property or interests in property of any Protected Party;
(c) creating, perfecting, or otherwise enforcing in any manner, directly or indirectly, any encumbrance against any Protected Party, or any property or interests in property of any Protected Party;
(d) setting off, see...
-- ASBESTOS CHANNELING INJUNCTION. 8.1 Congoleum shall use its reasonable best efforts to confirm the 11th Modified Plan, as such plan may be further amended or modified from time to time, or any plan of reorganization or liquidation of which Congoleum is a proponent or co-proponent; provided, however, that the confirmation of the Plan is not a condition or requirement of this Amended and Restated Agreement.
8.2 Congoleum shall use its reasonable best efforts to include in the 11th Modified Plan, as such plan may be further amended or modified from time to time, or any plan of reorganization or liquidation of which Congoleum is a proponent or co-proponent, and/or the Confirmation Order in respect of such plan an injunction against Asbestos Claims pursuant to, and to the fullest extent permitted by, Section 524(g) of the Bankruptcy Code (the “Asbestos Channeling Injunction”); provided, however, that the inclusion in the such plan and/or the Confirmation Order of the Asbestos Channeling Injunction is not a condition or requirement of this Amended and Restated Agreement. The FCR shall use his reasonable best efforts to include in any plan proposed by the FCR and/or the Confirmation Order in respect of such plan the Asbestos Channeling Injunction; provided, however, that the inclusion in such plan and/or the Confirmation Order of the Asbestos Channeling Injunction is not a condition or requirement of this Amended and Restated Agreement.
8.3 In the event that the Plan is confirmed and it includes the Asbestos Channeling Injunction, Mt. ▇▇▇▇▇▇▇▇ and Everest, automatically and without any further action, shall be entitled to, and shall be protected by, the Asbestos Channeling Injunction to the same extent that other settling insurers are protected by the Asbestos Channeling Injunction pursuant to the terms of the Plan, and, subject to Section 8.4, the Plan Trust will use its reasonable best efforts to ensure that Mt. ▇▇▇▇▇▇▇▇ and Everest are protected by the Asbestos Channeling Injunction to the same extent that other settling insurers are protected by the Asbestos Channeling Injunction in accordance with the terms of the Plan.
8.4 In the event that, after the effective date of the Plan, any Asbestos Claim is brought against Mt. ▇▇▇▇▇▇▇▇ or Everest that is subject to the Asbestos Channeling Injunction, the Plan Trust shall use its reasonable best efforts to establish that such Asbestos Claim is enjoined as to Mt. ▇▇▇▇▇▇▇▇ and Everest by operation of the Asbestos Channeling Injunction. To that end,...
-- ASBESTOS CHANNELING INJUNCTION. 6.1 Congoleum shall use its reasonable best efforts to confirm the Plan; provided, however, that the confirmation of the Plan is not a condition or requirement of this Amended and Restated Agreement.
6.2 Congoleum shall use its reasonable best efforts to include in the Plan and/or the Confirmation Order in respect of such plan an injunction against Plan Trust Asbestos Claims pursuant to, and to the fullest extent permitted by, Section 524(g) of the Bankruptcy Code (the “Asbestos Channeling Injunction”); provided, however, that the inclusion in such plan and/or the Confirmation Order of the Asbestos Channeling Injunction is not a condition or requirement of this Amended and Restated Agreement.
6.3 In the event that the Plan is confirmed and it includes the Asbestos Channeling Injunction, Federal, automatically and without any further action, shall be entitled to, and shall be protected by, the Asbestos Channeling Injunction to the same extent that other settling insurers are protected by the Asbestos Channeling Injunction pursuant to the terms of the Plan.
-- ASBESTOS CHANNELING INJUNCTION. The Asbestos Channeling Injunction shall: (a) Channel all current and future Asbestos Claims to the MCC Section 524(g) Trust; (b) Enjoin assertion of Asbestos Claims against the Debtors, Reorganized Debtors or Asbestos Protected Parties; (c) Enjoin assertion of insurer contribution and indemnification claims against the Debtors, the Reorganized Debtors, the Asbestos Protected Parties, and the MCC Section 524(g) Trust; and (d) Not prevent Asbestos Claimants from asserting workers’ compensation claims.