June 27, 2007 -- Federal-Mogul Corp., an auto-parts maker seeking to resolve billions of dollars in asbestos claims, will be profitable after emerging from U.S. bankruptcy, the company's chief executive officer told Bloomberg News today. Federal-Mogul in the first quarter posted net income of $4.5 million, after a $68.4 million net loss a year earlier, Bloomberg reported. The Southfield-based manufacturer entered Chapter 11 protection in October 2001. "We expect to be able to sustain that from now on," CEO Jose Maria Alapont told Bloomberg.
The company, which makes parts including pistons and cylinder rings, is seeking U.S. bankruptcy court approval for a reorganization plan including a victims' trust fund to resolve as much as $9.4 billion in asbestos claims. Hearings are set for July 9 and 10. Federal-Mogul used asbestos, a heat-resistant material that causes respiratory illness, in brake pads.
Source: The Detroit News
Source: Factiva
