Tags: Pfizer | quigley | vote | bankruptcy

Pfizer’s Quigley Unit Gets OK for Vote on Bankruptcy

Wednesday, 15 August 2012 03:14 PM

Pfizer Inc.’s non-operating Quigley Co. unit won permission to have creditors vote on a bankruptcy plan that bars most asbestos claims against the two companies, as a judge said the issue of whether Pfizer bought votes will be addressed later.

U.S. Bankruptcy Judge Stuart Bernstein in Manhattan court Wednesday approved Quigley’s sixth draft of a reorganization plan, after objections that it still hasn’t resolved issues of whether Pfizer devised the plan in “bad faith” and manipulated the bankruptcy for its benefit.

An issue that keeps resurfacing -- whether Pfizer’s actions are “just another attempt to buy the vote” of asbestos claimants -- will be addressed when Quigley seeks final confirmation of its plan after a vote, Bernstein said.

His ruling could lead to an end to the seven-year Chapter 11 case over how the former maker of products for the steel industry and its parent, the world’s largest drugmaker, will resolve their liability for asbestos claims. Under the draft plan, Pfizer contributes assets to a trust to cover claims that Quigley’s past products caused asbestos-related injuries.

Quigley, founded in 1916, made three products for the steel industry from the 1940s to the 1970s that contained asbestos. Pfizer bought Quigley in 1968. The unit stopped most operations in 1992 and filed for bankruptcy in 2004.

Pfizer has said it never made or sold any Quigley products. Some claimants haven’t released Pfizer from alleged “derivative liability,” according to the company.

The case is In re Quigley Co., 04-15739, U.S. Bankruptcy Court, Southern District of New York (Manhattan). The appeals case is 11-2635, 11-2767, U.S. Court of Appeals for the Second Circuit (Manhattan).

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Wednesday, 15 August 2012 03:14 PM
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