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Robins Considering $100-Million Fund for Dalkon Claims

July 07, 1986|From Reuters

RICHMOND, Va. — A. H. Robins Co. would pay a total of $100 million into a Dalkon Shield trust for 10 years but have no role in how the money would be spent, according to a draft of its plan of reorganization being circulated to lawyers in its bankruptcy case.

Under the proposal, which would require court approval, the fund would be run by three trustees who would report to a federal judge and who would supervise a four-step process for resolving the 330,000 Dalkon claims.

Business creditors would receive 85% of the approximately $56 million that they were owed when Robins filed its Chapter 11 petition.

The proposal does not envision any new issue of equity.

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