Johns-Manville asbestos bankruptcy (1982)
Asbestos manufacturer Johns-Manville filed Chapter 11 facing tens of thousands of injury claims. The 1988 reorganization created a trust funded by the company's stock and insurance to pay current and future claimants, and shielded the reorganized company from new asbestos suits.
Trust began paying claimants at reduced cents-on-the-dollar rates as filings exceeded projections.
Established the template—now codified in Section 524(g) of the Bankruptcy Code—for resolving mass torts through dedicated trusts, the structural ancestor of Purdue's settlement vehicle.
Manville pioneered using bankruptcy to channel mass claims into a structured payout while keeping useful operations alive—the same logic that produced Knoa Pharma.
