Halliburton in Chapter 11?

[Tims]

I was talking recently to a friend whose father was involved in a law suit with a company which was later purchased by Halliburton. He now has to try to recover damages from Halliburton. When he received a package from Halliburton's legal department, he was expecting either a settlement agreement or at least details of an appeal. What he received instead was a set of legal documents explaining why they were exempt from paying any claims due to the fact that they are currently covered under Chapter 11 bankruptcy rules.

It seems that Halliburton has created a vast network of offshore entities, most of which are officially in bankruptcy and seeming to exist solely for the purpose of shielding the company from creditors while the company, as a whole, is reaping huge profits.

Has anyone else heard anything like this and can anyone confirm it.

[BlueEyedSon]

1. Bankruptcy Court Stays Asbestos Claims Against Dresser Industries Inc.

Thursday February 14 (2002), 7:04 pm Eastern Time

Press Release
SOURCE: Halliburton Company

Bankruptcy Court Stays Asbestos Claims Against Dresser Industries Inc. In Harbison-Walker Chapter 11 Filing

DALLAS, Feb. 14 /PRNewswire-FirstCall/ -- Halliburton Company (NYSE: HAL - news) today announced that a U.S. Bankruptcy Court has issued a temporary restraining order staying more than 200,000 pending asbestos claims against its subsidiary Dresser Industries, Inc. The ruling came in connection with today's filing of a voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code by Harbison-Walker Refractories Company.

Harbison-Walker, which faces a large number of asbestos-related claims, said it would seek to reorganize its finances in Chapter 11 aided by a trust responsible for resolving all pending and future asbestos-related claims asserted against it. The stay is temporary until the bankruptcy court holds a hearing, which is expected during the next two weeks.

The stayed claims represent a majority of the pending asbestos claims against all Halliburton Company subsidiaries. Approximately 132,000 of the stayed claims are refractory claims that Harbison-Walker agreed to be responsible for when it was spun-off from Dresser Industries in 1992.

The balance of the stayed claims are pre-1992 refractory claims and other asbestos claims against Dresser Industries that are covered in whole or in part by the same insurance coverage.


Source http://www.mesothel.com/pages/apg_hw_bank_pag.htm

[Tims]

7. This wasn't an asbestos claim

And it was a separate Halliburton company than the one you mentioned. The question I have is how many such companies exist? One for each law suit?

The thing about the asbestos claim is the chapter 11 filing was based on POSSIBLY FUTURE losses. The subsidiary is still profitable and would only face POSSIBLE bankruptcy 10 or more years down the line, but in the meantime, they are allowed to file and stop ALL creditors and pay absolutely nothing to the asbestos claimants while reaping profits.

It seems rather bogus to be able to turn a profit while turning away creditors.

[BlueEyedSon]

8. OK, take the company name & the phrase "chapter 11" and google them

This is an example of the process though.

[murray hill farm]

2. Well..how does that work?

If a company files under chapter 11, are they allowed to have sort of sub companies..that continue to be profitable..while the stockholders of the chapter 11 company hold worthless stocks? How does that work?

[BuyingThyme]

4. That's how it works with K-Mart...

Bankruptcy is just one of the methods corporations use to take the money and run.

[tcoursen]

5. Trump

I don't know how it works, but it seems to work for the Donald.

He is all over TV bragging about how rich he is and all that, meanwhile his casinos in AC are tanking and I believe have filed for bankruptcy. Certainly hasn't hurt his lifestyle any. he'll probably come out ahead when all is said and done.

[tcoursen]

3. original company bankrupt?

Could it be that the original company was bankrupt, and that that bankrupcies, and the protection therein, transfered to Halliburton when they purchased the original company?

[Canuckistanian]

6. So, tell me again how a corporation is like a 'person'?

Can I designate someone to take all my debts for me and still continue to take money?

How does this work?

[BlueEyedSon]

9. On the upside, you can vote, but corporations can't

:)