US car parts maker Federal-Mogul has filed for Chapter 11 bankruptcy in an attempt to protect itself from mounting asbestos claims.
The company inherited huge asbestos liabilities when it bought British company T&N for £1.5bn in 1997. At the time, it made provision for T&N's lawsuits by setting aside $2.1bn, but that is apparently not enough to cope with the scale and level of the claims.
The company's chairman and chief executive, Frank Macher, said a complicated £500m insurance package arranged by T&N to cap liabilities above £380m had yet to pay out. It is believed the insurance was taken with Zurich Financial Services, Swiss Re and Munich Re.
Federal-Mogul said its British businesses would continue to operate and that none of its 4,500 workforce would lose their jobs.
Hosted by comedian and actor Tom Allen, 34 Gold, 23 Silver and 22 Bronze awards were handed out across an amazing 34 categories recognising brilliance and innovation right across the breadth of UK general insurance.
