CHARLOTTE, N.C.--(BUSINESS WIRE)--EnPro Industries, Inc. (NYSE: NPO) today announced that at 12:01 a.m.
Eastern Time on July 31, 2017 the joint plan of reorganization (the
“Joint Plan”) of certain of EnPro’s subsidiaries, including Garlock
Sealing Technologies LLC (“GST LLC”), to resolve their current and
future asbestos claims was consummated and became effective.
Consummation of the Joint Plan, which was confirmed by the U.S. District
Court for the Western District of North Carolina on June 12, 2017,
effects the substantive conclusion of the asbestos claims resolution
process involving GST LLC and EnPro subsidiaries, Garrison Litigation
Management Group, Ltd. (“Garrison”), The Anchor Packing Company
(“Anchor” and, together with GST LLC and Garrison, “GST”) and OldCo,
LLC, the successor by merger to Coltec Industries Inc (“OldCo”).
Under the Joint Plan, EnPro retained ownership of GST and OldCo and,
upon the effectiveness of the Joint Plan, each of these subsidiaries
became free to operate its respective business and use, acquire, and
dispose of its respective property free of any restrictions of the
United States Bankruptcy Code in all respects as if there were no
pending cases under any chapter or provision of the United States
Bankruptcy Code, except for obligations under the Joint Plan, the
documents under the Joint Plan and the District Court’s confirmation
order.
As a result, GST and OldCo have been reconsolidated with EnPro for
financial reporting purposes as of July 31, 2017. “The consummation of
the Joint Plan represents the successful culmination of many years of
dedicated effort to resolve the asbestos burden that has weighed on our
company since we were founded in 2002,” said Steve Macadam, EnPro’s
President and CEO. “We are grateful to all those, including our
employees and our outside lawyers and consultants, who have worked so
hard to achieve this outcome and to our board of directors and
shareholders who supported us throughout this effort,” Mr. Macadam
continued.
Pursuant to applicable accounting rules, upon and as of the date of the
effectiveness of the Joint Plan, the assets and liabilities of both GST
and OldCo are reconsolidated into the EnPro balance sheet at their
estimated fair value, and a pre-tax gain is recognized for the excess of
the estimated fair value of the GST and OldCo businesses over the net
book value of EnPro’s investment. In addition, EnPro’s consolidated
financial statements will include the sales, income, expenses and cash
flows of both GST and OldCo beginning on July 31, 2017. Periods prior to
that date will not be restated to include GST and OldCo’s results.
Forward Looking Statements
Statements in this press release that express a belief, expectation or
intention, as well as those that are not historical fact, are
forward-looking statements under the Private Securities Litigation
Reform Act of 1995. They involve a number of risks and uncertainties
that may cause actual events and results to differ materially from such
forward-looking statements. These risks and uncertainties include, but
are not limited to, risks and uncertainties described in EnPro’s filings
with the Securities and Exchange Commission, including the Form 10-K for
the year ended December 31, 2016. Except as may be required by law or as
expressly undertaken in this press release, EnPro does not undertake to
update any forward-looking statement made in this press release to
reflect any change in management's expectations or any change in the
assumptions or circumstances on which such statements are based.
About EnPro Industries
EnPro Industries, Inc. is a leader in sealing products, metal polymer
and filament wound bearings, components and service for reciprocating
compressors, diesel and dual-fuel engines and other engineered products
for use in critical applications by industries worldwide. For more
information about EnPro, visit the company’s website at http://www.enproindustries.com.
