AIG Insurer to Pay $42.5M to Cleanup Sites of Bankrupt Underwear Company

January 10, 2008

  • January 10, 2008 at 4:46 am
    JP says:
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    Fruit of the Loom is bankrupt? What rectum?

  • January 10, 2008 at 4:48 am
    Me says:
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    must have been polluted panties… good one JP – Happy Thursday Every One!

  • January 10, 2008 at 5:18 am
    Panties in a bunch says:
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    Sanits (sometimes spelled “Saints”) Fan II sure has his panties in a bunch. I always thought us insurance types had a sense of humor and here we are proving it! “Sanits” must have been under water a little too long.

  • January 10, 2008 at 6:12 am
    Grape says:
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    Since the info contained in this article was just crowning, I found the following info to get it all out. Sounds like the pollution actually had nothing to do with underwear, just chemical companies formerly owned by the fruits…….
    The other sites involved are Velsicol Chemical (Hardeman) site in Toone, Tenn. and the Ventron/Velsicol site in Bergen County, N.J. In 2005, the AIG subsidiary fought efforts to collect the $100 million limit on the policy by suing NWI-I Inc., a bankrupt conglomerate that was formerly known as Fruit of the Loom Inc. that previously owned Velsicol. Velsicol took over the Michigan Chemical Company in 1963. In 1971 Velsicol began producing the fire retardant PBB. Following a mishap with PBB getting packaged into bags marketed for animal feed in the state, the company ultimately closed down in 1978. Velsicol in the next decade was bought out by the owner of Northwest Industries, which then was bought by Fruit of the Loom. By 1999, both entities were in bankruptcy. In its 2005 suit, AISLIC charged that NWI breached the terms of its policy when it agreed to transfer its coverage rights to the bankruptcy trusts. Le Petomane II Inc. and Le Petomane III Inc. became the trustee corporations of the Velsicol properties. Wednesday’s news release says the settlement “resolves a lawsuit that began in 2005 over environmental insurance coverage between AISLIC and the two bankruptcy trusts, and concludes litigation in which the Department of Justice intervened on behalf of the EPA, the Department of Interior, the Nuclear Regulatory Commission, and the National Oceanic and Atmospheric Administration. The states of New Jersey, Tennessee, Illinois and Michigan have also joined the settlement.”

  • January 11, 2008 at 12:11 pm
    Catte says:
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    This stuff is great. Really.



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