USG gets mediator to resolve asbestos liability, reorganization plan

New York, May 27 - The judge in USG Corp.'s Chapter 11 case named David Geronemus of JAMS as mediator to help resolve issues of asbestos personal injury liability and negotiate terms of a reorganization plan, among other matters.

The move to appoint a mediator was initiated by the court itself, according to a Wednesday order from judge Judith Fitzgerald naming Geronemus to the role. It said a mediator is "in the best interest of [USG], their estates, and creditors."

Geronemus will determine the scope of the mediation in consultation with the parties involved but he will consider "the alleged asbestos personal injury liability of the debtors and the potential terms of a plan of reorganization," according to the court order.

Mediation will begin "forthwith."

Geronemus is a senior mediator at JAMS, a New York-based mediation service. He was previously a partner at Donovan, Leisure, Newton & Irvine and has been a law clerk to Supreme Court justice Potter Stewart.

USG, a Chicago-based sheetrock maker, filed for Chapter 11 on July 25, 2001 in the U.S. Bankruptcy Court for the District of Delaware due to asbestos litigation claims. Its case number is 01-2094.

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