Hercules Chemical Emerges From Bankruptcy
March 5, 2010
PASSAIC, N.J. — The employee-owners of Hercules Chemical Co. announced that the company has officially emerged from bankruptcy. After battling asbestos lawsuits for over 20 years for a single product manufactured prior to 1983, the company had no choice but to file for protection under Chapter 11 on Aug. 22, 2008. Its reorganization plan was approved by the United States Bankruptcy Court for the District of New Jersey on Dec. 22, 2009. The U.S. District Court for the District of New Jersey gave its seal of approval on Jan. 6, 2010. The effective date of the plan is Feb. 9, 2010.
Pursuant to the confirmation order and plan, all present and future asbestos-related liabilities and obligations against the company will be channeled to an independent Asbestos Trust. With the bankruptcy behind them, the employee-owners of Hercules look forward to investing their time and resources in providing products for the plumbing and heating industry.
David Siegal, president of Hercules, noted his particular pride in Hercules employee-owners. “Their terrific effort throughout the bankruptcy process allowed us to maintain the service levels for which we are known.”
“The bankruptcy removed a major obstacle to our future progress with hardly a blip in our relationships with our suppliers and customers,” said Leonard Ruvolo, vice president of Finance.
Hercules offers a full line of plumbing chemical and related products primarily through plumbing and heating wholesalers through its association with Oatey Supply Chain Services.
