Wasn the NSP going to quantify liabilities and resolve the asbestos problem?
The National Settlement Program did quantify the cost of resolving NSP claims and helped estimate the cost of resolving claims outside of the NSP. However, even after we adjusted our reserves to provide for the increase in claims under the NSP and for settlements outside the NSP, we stated clearly we could meet our payment obligations only if, among other things, the company’s operating performance did not decline. Unfortunately, a combination of factors including an increase in the number of claims both inside and outside the NSP process, an increase in the average cost of settlements and a deterioration of economic conditions in our key markets created extraordinary pressure on our cash flow that led to the decision to file for Chapter 11.
