Plant Insulation Asbestos Trust Annual Reports, 2012–2025

Plant ended 2025 with $148.82 million in net claimants’ equity, down $4.56 million from $153.39 million. The Trust reported $4.90 million of investment income net of investment expenses, $9.76 million of realized and unrealized gains and $3.50 million of initial funding. Claims settled and paid were $14.24 million, substantially below 2024’s $47.37 million. Operating expenses decreased to $947,800, while income tax expense totaled $4.67 million, comprising $3.79 million of current tax and $886,153 of deferred tax.

Outstanding claim offers increased on a net basis from $3.48 million to $6.51 million, an additional reduction in equity beyond the claims already paid. The Trust received 549 claims, issued 552 offers and paid 354 claims; these are separate activity counts rather than a single cohort. The report identifies a 20% Funds Received Ratio and a 34.49% cumulative inflation adjustment for 2025 payments. Cash, cash equivalents and investments ended at $160.61 million, including $5.0 million restricted for indemnification, with claims, tax payments and other outflows continuing to draw on accumulated resources.

Plant’s net claimants’ equity declined by $34.49 million in 2024, from $187.88 million to $153.39 million. The Trust reported $5.70 million of investment income net of investment expenses, $8.81 million of realized and unrealized gains and $3.50 million of initial funding. These additions were outweighed by $47.37 million of claims settled and paid, $1.23 million of operating expenses and a $4.92 million deferred tax provision. A $1.03 million decrease in outstanding claim offers partially offset those deductions.

The Funds Received Ratio increased from 16.5% to 20% in April 2024, with the increase applying retroactively to claims paid since inception. The year’s distributions therefore occurred in the context of both continuing claims activity and increased payments to earlier claimants. Cash, cash equivalents and investments decreased by $30.52 million to $162.26 million; this combined balance included investments and $5.0 million restricted for indemnification obligations, rather than representing cash freely available for claims.

Plant ended 2022 with $223.95 million in net claimants’ equity, a decline of $19.26 million. The main pressure was $24.87 million of realized and unrealized investment losses, partially offset by $3.53 million of investment income net of investment expenses and $3.50 million of initial funding. A $9.54 million deferred tax benefit softened the reported decline but did not provide cash to the Trust.

Claims settled and paid totaled $5.99 million, with another $380,722 deduction for increased outstanding offers. Operating expenses rose to $4.53 million, including $3.51 million of success fees, making the total unrepresentative of routine administration alone. Cash, cash equivalents and investments fell by $28.67 million to $218.94 million, largely because of $27.14 million in unrealized losses. The year demonstrates how market declines and unusual expenses can reduce the asset base even when claims payments are lower than in the preceding year.

Plant’s net claimants’ equity increased by $7.47 million in 2021 to $243.21 million. Investment income net of investment expenses was $2.89 million, supplemented by $14.88 million of realized and unrealized gains and $3.50 million of initial funding. A $2.12 million decrease in outstanding claim offers also increased equity by releasing previously recorded claim obligations; it was not an additional cash receipt.

The Trust settled and paid $8.49 million in claims, incurred $1.50 million of operating expenses and recorded a $6.01 million deferred tax provision. Cash, cash equivalents and investments increased from $236.35 million to $247.61 million. The cash-flow statement attributed that increase to $5.04 million of net cash inflows and $6.21 million of unrealized investment gains. Favorable investment results, continued funding and lower outstanding offers together supported the year’s improvement in equity.

Plant ended 2020 with $235.74 million in net claimants’ equity, up $1.85 million. The Trust reported $3.91 million of investment income net of investment expenses, $15.06 million of realized and unrealized investment gains and $1.50 million of initial funding. These additions exceeded claims payments, operating costs and other deductions, although a $6.55 million deferred tax provision absorbed a significant portion of the investment-related increase.

Claims settled and paid totaled $9.17 million, and outstanding claim offers increased by $1.64 million. Operating expenses were $1.32 million. Cash, cash equivalents and investments rose by $10.04 million to $236.35 million, but that combined balance includes market-valued investments: the cash-flow statement reported $2.67 million of net cash outflows, offset by $12.71 million of unrealized gains. The growth in reported resources therefore depended substantially on investment appreciation rather than a cash surplus.

Plant’s net claimants’ equity decreased by $7.18 million in 2019, ending the year at $233.89 million. Strong investment results included $4.63 million of income net of investment expenses and $19.86 million of realized and unrealized gains. The Trust also recorded $1.50 million of initial funding. These additions offset much of the year’s distributions, but the $8.39 million deferred tax provision materially reduced reported equity without representing a current cash tax payment.

Claims settled and paid totaled $23.54 million, while outstanding claim offers decreased by $557,857. Operating expenses were $1.91 million. The Funds Received Ratio increased to 11.5% in May 2019, with the increase applying retroactively to previously paid claims, so total distributions should not be interpreted solely as payments on newly processed claims. Cash, cash equivalents and investments ended the year at $226.31 million, down $1.38 million despite the favorable investment gains.

Plant ended 2017 with $239.22 million in net claimants’ equity, an increase of $3.42 million. Investment income of $4.29 million and realized and unrealized gains of $12.92 million provided substantial support, alongside $1.50 million of initial funding. The statements also added back $4.54 million through a reduction in the claimant carveout, an adjustment to a previously recorded obligation rather than a fresh cash receipt.

Cash distributions consisted of $11.31 million in Trust claims and $4.24 million in carveout claims. Outstanding Trust offers increased by $1.24 million, while operating expenses were $2.10 million and deferred income tax expense was $969,000. Investment performance and the release of the carveout obligation allowed reported equity to grow despite these distributions. The cash-flow statement’s ending balance of $228.25 million combines cash, cash equivalents and investments; it should not be interpreted as cash alone.

Plant’s net claimants’ equity declined by $3.33 million in 2016, ending the year at $235.80 million. Investment results improved, with $3.50 million of investment income and $4.49 million of realized and unrealized gains. Initial funding contributed $3.30 million, while a $1.73 million reduction in the previously recorded claimant carveout also increased equity. That carveout adjustment released a recorded obligation and should not be treated as new funding or investment income.

The Trust paid $10.27 million in Trust claims and a separate $383,987 in carveout claims. Outstanding Trust offers increased by $3.45 million, creating an additional deduction from equity beyond the cash payments made. Operating expenses were $2.18 million and the deferred income tax provision was $128,000. Favorable investment results and additional funding therefore covered much, but not all, of the expanding claims activity and related obligations.

Plant ended 2015 with $239.14 million in net claimants’ equity, a decrease of $3.68 million. The Trust recorded $9.90 million of initial funding and $1.36 million of investment income, offset by $3.15 million of realized and unrealized investment losses. Operating expenses were $3.97 million, including $1.50 million of coverage-litigation fees. A $6.60 million deferred tax provision was a substantial additional deduction from equity, although it was not a current cash tax payment.

Claims activity began during the year. The Trust paid $601,456 in claims and recorded $496,341 of outstanding offers, together accounting for approximately $1.10 million of approved Trust claims. Those unpaid offers were recognized separately from cash distributions. Another $120,000 deduction reflected increased future facility and staff sharing obligations. Overall, new funding partly offset investment losses, operating costs and tax adjustments during the first year of claims processing.

Plant’s net claimants’ equity increased from $5.02 million to $242.81 million in 2014, principally because the Trust recorded $278.67 million of initial funding. Investment income was only $54,009. A $22.72 million deferred tax benefit also increased reported equity, but represented an accounting benefit rather than additional cash funding. The Trust’s modified effective date was September 22, 2014, and cash and cash equivalents reached $223.53 million at year-end.

Operating expenses totaled $57.40 million, dominated by $53.37 million of coverage-litigation fees; this unusually large expense should not be read as the Trust’s recurring administrative cost. The Trust also recorded a $6.27 million claimant carveout for claims predating its effective date and a $228,000 increase in future facility and staff sharing obligations. No claims were submitted for processing during 2014. The report thus captures the major funding and insurance-recovery phase before the Trust began accepting claims in February 2015.

Plant ended 2013 with $5.02 million in net claimants’ equity, down $1.86 million from $6.88 million. Only $25,000 of additional initial funding and $10,202 of investment income were reported. A $1.07 million deferred income tax benefit partly offset $2.70 million of operating expenses and a $255,000 deduction for a deferred lawsuit claim obligation. Because the tax benefit was noncash, it did not replenish the resources used to operate the Trust; cash and cash equivalents fell from $5.06 million to $2.48 million.

No claims were filed with the Trust during the year. The report also describes the October 2013 appellate decision vacating the plan confirmation order and the subsequent order preserving the Trust’s existence and ordinary operations while prohibiting claim payments pending further proceedings. The year’s decline in equity consequently reflects administration and recorded obligations during an unsettled implementation period, rather than distributions to asbestos claimants.

Plant’s first annual report covers the short period from its inception on November 16, 2012 through December 31, 2012. The Trust received $7.53 million of initial funding and ended the period with $6.88 million in net claimants’ equity. Its assets included $5.06 million of cash and cash equivalents, a $2.0 million investment in the reorganized debtor, Bayside Insulation and Construction, and a $307,000 deferred tax asset. The deferred tax benefit increased reported equity but did not represent a cash receipt.

Operating expenses were $776,368, with a further $180,000 deduction for future obligations under the facility and staff sharing agreement. Investment income was only $666, reflecting the Trust’s initial establishment rather than a full year of investment operations. The Funds Received Ratio had not yet been set, and no Trust claims were processed during the period. This report therefore describes the initial funding and administrative setup of the Trust before claims distributions began.