Exhibit 99
FOR: G-I
1361 Alps Road, Wayne, New Jersey 07470
FROM: EDWARD G. NOVOTNY & ASSOCIATES, INC.
Two Tudor City Place, New York, New York 10017
Tel: 212.490.2065, Fax: 212.661.1336, Email: [email protected]
FOR IMMEDIATE RELEASE
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FRIDAY, JANUARY 5, 2001
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G-I FILES CHAPTER 11 PETITION
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TO RESOLVE ASBESTOS LIABILITY CLAIMS
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WAYNE, New Jersey -- G-I announced today that it has filed a voluntary
petition in the U. S. Bankruptcy Court for the District of New Jersey in Newark,
New Jersey to resolve asbestos liability claims against the Company in a
reorganization under Chapter 11 of the U. S. Bankruptcy Court. G-I, the
successor to GAF Corporation as a result of a merger, is a privately-held
holding company, and its only operating subsidiary, Building Materials
Corporation of America, is not included in the filing.
G-I's asbestos liability arose in connection with a 1967 acquisition of
Ruberoid Company, which included at the time a small, non-core business which
produced an asbestos insulation product, Calcilite. The United States Navy
requested Ruberoid during World War II to develop this product for use as an
insulation material in its ships. After the United States Public Health Service
concluded that Calcilite was safe, Ruberoid supplied the product to Naval
shipyards pursuant to requisition in accordance with Government specifications,
and a substantial portion of the Company's total Calcilite sales were made to
the United States Government. After publication in the late 60's of medical
studies concerning the dangers of asbestos, the Company closed its Calcilite
operation and has not produced these products for 30 years.
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Since the 1970's, G-I has paid out, as a result of the Ruberoid
acquisition, whose asbestos insulation business had profits over a 30-year
period of $1 million and sales of $35 million, in connection with over 500,000
personal injury claims filed against the Company, more than $1.5 billion in
claims and expenses, a substantial portion of which has gone to legal fees and
people who have had no asbestos-related impairment.
Commenting on the announcement, Richard A. Weinberg, Chief Executive
Officer and General Counsel of G-I, said, "Today's action was taken only after
every effort was made by the Company to responsibly resolve its asbestos
liabilities. While our overriding objective has always been to compensate
deserving asbestos victims that have been injured as a result of Ruberoid's
products, there is simply not enough money in the world to make substantial
payments as well as to the almost limitless population of those who have in the
past been exposed to asbestos but who have no asbestos-related injury. In this
latter connection, it has been estimated that as many as 85% of all current
asbestos personal injury claimants have no asbestos-related impairment."
Mr. Weinberg attributed the necessity of the filing to, "The sharp,
unforeseen increase in the number of claims asserted, the dramatic escalation in
settlement demands, the inability of the tort system to resolve such claims in a
fair and orderly manner, and the recent rash of asbestos-related bankruptcies
which has increased the pressure on remaining defendants to cover the share of
payments formerly made by bankrupt defendants, together with lower than expected
financial results over the past year from the Company's operating subsidiary."
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