Uniroyal Files for Chapter 11 to Resolve Legacy Liabilities

Uniroyal Holding Inc. and its subsidiary Great Hill Corp. have filed for Chapter 11 bankruptcy protection in the US to wind up the business and resolve decades-old retiree and asbestos liabilities. The company proposes to pay non-asbestos creditors in full, establish a trust to resolve current and future asbestos personal injury claims, settle retiree medical and life insurance obligations, and dissolve the companies. This move comes after the company has spent the past four decades managing legacy obligations, including retiree medical and life insurance benefits and asbestos litigation, using income generated from its investment portfolio. Uniroyal no longer has operating businesses and its remaining five employees are approaching retirement, making it an appropriate time to complete an orderly wind-down. The company traces its origins to the United States Rubber Co., founded in 1892, and exited its operating businesses following a series of restructurings in the mid-1980s. The Uniroyal tire brand was divested in stages during the 1980s and 1990s, with the European operations sold to Continental AG in 1979 and the North American tire business merged with BF Goodrich in 1986 before being entirely acquired by the Michelin Group in 1990.