ASBESTOS LITIGATION: ABB Says Asbestos Cases Pose a Threat
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Published July 4, 2003


In a recent filing with the Securities & Exchange Commission,
the Swiss engineering group warns that a drawn-out appeals
process against its $1,300,000,000 asbestos compensation package
could make it impossible to obtain fresh capital. Absence of
which would make it impossible to cut its debt.

ABB Ltd admits that the US asbestos cases are indeed a big blow.
It says that if it cannot cut its debt, it might be unable to
meet its obligations in time and consequently be unable to
survive, according to the filing.

ABB's proposed asbestos compensation package is currently
awaiting verdict in the bankruptcy court in Delaware. A federal
court, whose ruling in turn can be appealed, must then approve
the package.




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