Partners at business recovery firm Kroll brought the case forth on behalf of employees from beleaguered engineering firm Turner & Newell, a subsidiary of Federal & Mogul, which went into administration in October 2001.
Central to the administration is recovering money for T&N employees who contracted asbestos after working at the company’s UK plants, as they are creditors.
On Friday the court ordered insurance companies Royal & Sun Alliance and Lloyds to cover insurance claims for employers from T&N from 1972 to 1995.
This significant decision is a major step towards enabling a group of former employees of T&N, who are now sick with asbestos-related diseases, and the relatives of those who have already died, to obtain compensation from the insurers. Many future claimants will also benefit.
Simon Freakley, joint administrator in the case, said: ‘This resounding decision is excellent news for fomer employees of T&N. UK employee claims should now be able to progress.’
The insurers have brought a further action to avoid their asbestos liabilities.
Steve Absolom and Will Wright from KPMG Restructuring have been appointed joint administrators to City Motor Holdings and associated companies
Partners from Johnston Carmichael have been appointed as joint administrators to Axon Well Interventions Products UK
Begbies Traynor have been appointed administrators of William Anelay Ltd, York, one of Britain’s longest-established construction and heritage restoration companies
Smith & Williamson has been appointed administrators of charity 4Children