The Wall Street Journal-20080117-Federal-Mogul Elects Icahn
Return to: The_Wall_Street_Journal-20080117
Federal-Mogul Elects Icahn
Associated Press
SOUTHFIELD, Mich. -- Auto supplier Federal-Mogul Corp., fresh out of six years of bankruptcy protection, said yesterday that its board elected billionaire investor Carl Icahn as nonexecutive chairman.
"I am very pleased that a financially strong Federal-Mogul has finally emerged from the bankruptcy process," said Mr. Icahn, 71 years old, a major bondholder in Federal-Mogul and one of its main shareholders.
The new board includes Mr. Icahn and three of his associates. If Mr. Icahn's Thornwood Associates LP exercises all the stock options outlined in the bankruptcy plan, it would be Federal-Mogul's majority shareholder.
Federal-Mogul emerged from Chapter 11 bankruptcy Dec. 27. The plan was confirmed by the U.S. Bankruptcy Court Nov. 8 and affirmed by U.S. District Court Nov. 14.
Federal-Mogul filed for bankruptcy protection in 2001. It faced 365,000 lawsuits seeking hundreds of millions in damages stemming from asbestos-liability claims. The company took on the liability in 1998, when it bought several companies facing their own asbestos claims.
