A Breather for Manville
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“Filing for Chapter 11 Is a Way for Guilty Corporations to Legally Defraud Victims” (Viewpoints, Sept. 9) contained a massive misstatement of fact. Insurance companies are not the U.S. government and do not measure insurance coverage in billions. Even General Motors does not have “$1 billion” in insurance coverage.
As to Manville’s net worth of $1.5 billion, closing down the corporation to realize cash to pay these claims would not generate anything near the $1.5-billion figure and would throw thousands of people out of work.
In actual fact and once again contrary to attorney Richard F. Gerry’s statements, the bankruptcy proceedings have given breathing space to Manville and its insurers and permitted them to deal with the problems of the claimants as a group rather than piecemeal.
The result has been that the much maligned insurers have set up a joint pool of funds for these claimants and Manville has now agreed to put up 80% of the stock of the corporation for the benefit of these claimants as well.
W. H. SUTER, Executive Director
California Assn. of Independent
Insurance Adjusters
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