Editing Johns Manville Trust (section)

== How Did Johns Manville's Bankruptcy Create the Modern Trust Fund System? ==

The Johns Manville bankruptcy of 1982 was a watershed moment in American corporate law, establishing the legal framework that all subsequent [https://dandell.com/mesothelioma/mesothelioma-asbestos-trust-fund-payouts/ asbestos bankruptcy trusts] would follow.

=== What Led to the Bankruptcy Filing? ===

By the early 1980s, Johns Manville faced an avalanche of litigation:
* Over 16,000 pending asbestos lawsuits at the time of filing
* Projected future claims numbering in the hundreds of thousands
* Mounting evidence of corporate knowledge of asbestos dangers dating back decades

On '''August 26, 1982''', Johns Manville filed for Chapter 11 bankruptcy protection in the Southern District of New York, becoming the first major industrial company to use bankruptcy as a mechanism for managing mass tort liability.

=== How Was the Trust Established? ===

The Manville Personal Injury Settlement Trust was established in 1988 under the supervision of bankruptcy Judge Burton Lifland with initial funding of approximately $2.5 billion. The trust received:
* 80% of Manville Corporation's common stock
* Future insurance settlements
* Ongoing contribution agreements

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| style="padding:10px;" | "''Many families don't realize that the Johns Manville Trust has paid out more than double its original funding—over $5 billion total. Even with the current 5.1% payment rate, this trust remains a vital component of most mesothelioma compensation strategies.''" — '''Rod De Llano''', Founding Partner, [https://dandell.com/mesothelioma-lawyers/ Danziger & De Llano]
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=== What Happened During the 1990 Crisis? ===

By July 1990, the trust faced near-failure when it became apparent that current assets could only satisfy a small portion of pending claims. Judge Jack Weinstein imposed a payment stay and ordered restructuring. In 1991, Manville Corporation, court-appointed representatives, and the Trust negotiated a new financial agreement that stabilized operations.

Despite paying over $4 billion by 2012—far exceeding the initial $2.5 billion funding—the trust still maintained over $600 million in assets through stock appreciation and careful fund management.