T&N Ltd & Ors, Re Insolvency Act 1986 - Asbestos claims on Insolvency, High Court 14.12.2005
Unknown future asbestos related claims were causing problems on winding up a company. Particular difficulty concerned possible claims in tort by family members (eg a wife who washed a worker's overalls and breathed in asbestos dust) as opposed to claims by ex-workers under their contracts. A settlement agreement was proposed. This involved a voluntary arrangement (CVA) under Part I of the Insolvency Act 1986. The High Court held that future asbestos claimants counted as creditors and so could be bound by the terms of the CVA.
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