Leslie Controls plan to be reviewed by district court in January

By Caroline Salls

Pittsburgh, Dec. 23 - Leslie Controls, Inc.'s parent, Circor International, Inc., said the U.S. District Court review of Leslie's confirmed plan of reorganization is scheduled for January, according to a news release Thursday.

Circor said it had originally hoped that the district court would review the plan in time to allow the subsidiary to emerge from bankruptcy in the fourth quarter.

At the January hearing, Circor said the district court will review the Section 524(g) asbestos trust aspects of the reorganization plan and consider appeals lodged by some of Leslie's insurers.

Upon entry of a district court order of approval and absent a stay pending any further appeals, Leslie and Circor would fund the Section 524(g) asbestos trust once various closing conditions are satisfied and the reorganization plan takes effect.

However, Circor said Leslie's emergence from bankruptcy and distributions from the trust to claimants would not occur until any subsequent appeals of the district court's order are favorably resolved.

Leslie Controls is a subsidiary of Circor, a Burlington, Mass.-based designer, manufacturer and distributor of fluid-control products and services. Leslie filed for bankruptcy on July 12 in the U.S. Bankruptcy Court for the District of Delaware, and its Chapter 11 case number is 10-12199.

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