18 February 2003
ABB unit files for Chapter 11
Zurich, Switzerland - ABB Ltd. said yesterday that its U.S. subsidiary Combustion Engineering, Inc. (CE) has filed for Chapter 11 in the Delaware bankruptcy court, based upon CE’s previously announced pre -packaged plan of reorganization.
The pre-packaged plan was earlier negotiated with certain asbestos claimants’ lawyers and approved by David Austern, the proposed representative for future claimants.
The voting period for the plan commenced in January and is currently scheduled to end on February 19, 2003. As of Saturday, February 15, approximately 103,000 favorable votes had been received, together with less than 1,000 votes cast against the plan.
CE decided to file the Chapter 11 case prior to February 19 in order to foreclose any possible last minute effort by objecting claimants to file an involuntary bankruptcy and thereby interrupt the voting process.
CE intends to seek immediate confirmation from the bankruptcy court that voting will continue to completion on February 19, as originally scheduled.
CE is encouraged by the magnitude and favorable outcome of the vote to date. CE will seek prompt confirmation of the proposed pre-packaged plan.
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