§ Mr. ClaphamTo ask the Secretary of State for Trade and Industry when she last met the administrators of T&N Ltd. to discuss compensation for former employees suffering from asbestos-related illnesses; and if she will make a statement. [153910]
§ Jacqui Smith[holding answer 11 February 2004]: My right hon. Friend the Secretary of State for Trade and Industry has not had a meeting with the Administration of T&N Ltd. to discuss this issue, as the payment of compensation to the former employees does not fall within her areas of responsibility.
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§ Mr. ClaphamTo ask the Secretary of State for Trade and Industry how much has been paid for the services of the UK administrators of T&N Ltd. since they were appointed; and what the weekly fee paid to(a) them and (b) their solicitor is. [153911]
§ Jacqui Smith[holding answer 11 February 2004]: Administration is a collective insolvency procedure and it is for creditors to determine the administrators' remuneration. Insolvency legislation provides that creditors who consider an administrator's remuneration to be excessive can apply to the court for it to be reduced.
§ Mr. ClaphamTo ask the Secretary of State for Trade and Industry what the latest estimate is of when Federal Mogul are likely to be out of administration; what is being done to protect the interests of the former T&N employees suffering from asbestos-related illnesses in the meantime; and if she will make a statement. [153912]
§ Jacqui Smith[holding answer 11 February 2004]: T&N went into administration when Federal Mogul a US-based manufacturing group filed for bankruptcy in the US. T&N's discharge from administration is dependent on Federal Mogul's discharge from bankruptcy.
A Global Reorganisation Plan for Federal Mogul, which includes a Trust Distribution Plan to handle payments to all asbestos claimants in the group, is to be put before the US Bankruptcy Court this week. If the plan is approved the Administrators hope to be in a position to apply for the discharge of the administration order against T&N in the final quarter of 2004.
Asbestos claimants of T&N were represented on a committee established in the US bankruptcy proceedings that have been involved in negotiating the Trust Distribution Plan. The Administrators have negotiated to improve the treatment of UK asbestos claimants within the Plan and have taken legal proceedings against T&N's Employer Liability insurers, which, if ultimately successful, will directly benefit T&N's employee claimants.
Administration is a collective court-based insolvency procedure and it would be inappropriate for my right hon. Friend the Secretary of State for Trade and Industry to make a statement regarding this administration.