Garlock Asbestos Trust Annual Reports, 2018–2025

GST ended 2025 with $357.6 million in net assets, down $28.1 million from $385.6 million. Investment securities appreciated by $16.4 million and alternative investments gained approximately $686,000, with net interest and dividends adding $10.8 million. Recorded claimant expense increased to $53.7 million from $32.5 million, outweighing the improved investment results. Operating expenses declined to $2.3 million and claims-processing costs were approximately $382,000. Settled but unpaid claims rose to $5.19 million from $1.12 million, contributing to the difference between claimant expense and cash distributions.

The claims schedule reports $49.61 million in total cash payments, including $27.30 million on Category A–C claims, $22.25 million in supplemental payments, and approximately $59,000 on settled GST asbestos claims. Maximum settlement values increased on January 1, 2025, generating proportional additional payments to previously paid claimants. The schedule lists 3,521 new filings and 1,623 approved claims paid; the supplemental dollars should not be interpreted as additional newly paid claims. Those supplemental distributions were a major component of the increase in annual payments.

GST ended 2024 with $385.6 million in net assets, down $19.1 million from $404.8 million. Net interest and dividends totaled $12.5 million, and alternative investments gained $2.8 million, but investment securities lost approximately $847,000. A net income-tax refund of $1.4 million also supported the result. Recorded claimant expense declined to $32.5 million from $42.1 million, while operating expenses were $2.6 million and claims-processing costs were approximately $399,000. Lower investment gains more than offset the benefit of lower claimant expense, producing a somewhat larger annual decline.

The claims schedule lists 3,109 Category A–C filings and $31.35 million paid on 2,699 claims in those categories. Five pre-petition settled claims received approximately $34,000, bringing total cash distributions to $31.38 million; no pre-petition supplemental payments were reported. Mesothelioma payments accounted for approximately $24.0 million. Cash distributions were below recorded claimant expense as settled but unpaid claims increased to approximately $1.12 million.

GST ended 2023 with $404.8 million in net assets, down $16.7 million from $421.5 million. Investment performance recovered, with $12.7 million in gains on investment securities and $2.8 million on alternative investments, alongside $12.4 million in net interest and dividends. Recorded claimant expense nevertheless rose to $42.1 million. Operating expenses were $2.3 million and claims-processing costs fell to approximately $479,000. The investment recovery substantially moderated the decline in net assets but did not fully cover claims and operating costs.

The claims schedule reports 2,581 new Category A–C filings and $37.1 million paid on 2,514 claims in those categories. It separately reports approximately $981,000 paid on 58 pre-petition settled claims and $4.07 million in pre-petition supplemental payments, bringing total cash distributions to approximately $42.14 million. Mesothelioma claims accounted for $28.9 million of ordinary Category A–C payments. Supplemental payments are additional distributions to earlier recipients, rather than a separate count of newly paid claims.

GST ended 2022 with $421.5 million in net assets, down $67.5 million from $489.0 million. Investment securities lost $31.4 million and alternative investments lost $2.9 million, outweighing $8.7 million in net interest and dividends. Recorded claimant expense increased to $38.8 million, while operating expenses were $2.4 million and claims-processing costs rose to $1.0 million from approximately $363,000. Investment losses and higher claims costs combined to produce a much larger decline than in 2021.

The claims schedule reports 16,508 Category A–C filings, plus seven pre-petition filings. Cash distributions totaled approximately $41.0 million: $38.6 million on 2,972 Category A–C claims, $2.23 million in supplemental payments associated with the November 2021 increase in maximum settlement values, and approximately $195,000 on nine pre-petition claims. Supplemental payments represent additional amounts for earlier recipients and should not be counted as new paid claims. Cash distributions exceeded recorded claimant expense as settled obligations from prior periods were paid.

GST ended 2021 with $489.0 million in net assets available for claims, down $25.0 million from $514.0 million. Recorded claimant expense rose sharply to $28.6 million from $7.4 million. Net interest and dividends totaled $6.6 million, while $1.7 million in alternative-investment gains were partly offset by approximately $451,000 in investment-securities losses. Operating expenses were $2.4 million, claims-processing costs were approximately $363,000, and income-tax expense was $1.8 million. Higher claims costs and weaker investment gains reversed the preceding year’s increase in net assets.

The claims schedule reports $19.85 million in supplemental payments after maximum settlement values increased on November 11, giving previously paid claimants proportional additional payments. It separately lists $4.46 million paid on 1,159 Category A–C claims and $2.10 million on 82 pre-petition claims. Those schedule amounts total $26.41 million, $60,000 above the audited notes’ $26.35 million cash-payment total. Both figures differ from recognized claimant expense; settled but unpaid claims increased to $2.24 million at year-end.

GST ended 2020 with $514.0 million in net assets available for claims, up $11.5 million from $502.5 million. Investment securities and alternative investments together gained $15.2 million, while net interest and dividends added $6.8 million. Recorded claimant expense increased to $7.4 million from $4.0 million. Operating expenses declined to $2.6 million, claims-processing costs were approximately $391,000, and income-tax expense was $55,000. Positive investment results continued to exceed claims and operating costs, although annual growth was smaller than in 2019.

The claims schedule lists 4,341 filings and 1,190 claims paid, with approximately $7.8 million in cash distributions. Payments included $4.75 million for mesothelioma claims and $2.44 million for 84 pre-petition settled claims. The cash total was slightly above recorded claimant expense as previously settled obligations were paid. Both filing volume and the number of paid claims increased substantially from the facility’s first payment year.

GST ended 2019 with $502.5 million in net assets available for claims, up $20.3 million from $482.2 million. Investment securities appreciated by $15.1 million and alternative investments gained $2.5 million, supplemented by $10.9 million in net interest and dividends. These additions exceeded $4.0 million in recorded claimant expense, $3.1 million in operating expenses, approximately $447,000 in claims-processing costs, and $704,000 in income-tax expense. Strong investment returns supported growth as the facility began making claim payments.

The claims schedule reports 3,345 filings, 734 approvals, and 279 claims paid, with $3.68 million in cash distributions. Mesothelioma claims accounted for approximately $3.49 million of those payments. The facility established maximum settlement values in April and began extending offers on unliquidated claims in June. A 50% initial payment percentage was approved specifically for valid pre-petition claims; those claims received initial offers in November but no cash payments in the annual schedule. The percentage should not be read as applying uniformly to all GST claims.

GST Settlement Facility ended 2018 with $482.2 million in net assets available for claims, up $2.9 million from $479.3 million. Interest and dividends of $8.5 million and an additional $1.2 million in initial funding outweighed combined investment depreciation of $2.3 million and operating costs. Operating expenses were $3.2 million, claims-processing costs were approximately $284,000, and income-tax expense was $945,000. The increase occurred before claimant distributions began, so it reflects funding and investment results during the launch of claims operations.

The facility opened claims intake on September 17, 2018. Its annual schedule lists 2,508 filings: 1,084 mesothelioma claims, 767 lung-cancer claims, and 657 claims in the remaining disease category. No claims were approved or paid during the year. The filing period for settled and pre-petition judgment claims closed on December 17, 2018. This report therefore provides an early operating baseline rather than a year of established payment activity.