Section 1 establishes limitations on asbestos liabilities relating to certain mergers or consolidations.
Subdivision 1 contains the short title.
Subdivision 2 contains the definitions. "Asbestos claim," "corporation," "innocent successor," "successor asbestos-related liabilities," and "transferor" are defined.
Subdivision 3 contains applicability provisions. Limitations in subdivision 4 would apply to an innocent successor corporation but would not apply to workers' compensation benefits; a claim against a corporation that does not constitute a successor asbestos-related liability; an obligation under the National Labor Relations Act or a collective bargaining agreement; or a successor corporation that continued in the asbestos business after the merger or consolidation.
Subdivision 4 contains the limitation on the asbestos-related liabilities of an innocent successor corporation. These liabilities would be limited to the fair market value of the total gross assets of the transferor determined as of the time of a merger or consolidation. If the transferor assumed or incurred these liabilities in connection with a prior merger or consolidation, then fair market value of the total assets of the prior transferor would be determined as of the time of the earlier merger or consolidation.
Subdivision 5 contains the rules for establishing the fair market value of total gross assets.
Subdivision 6 provides for an adjustment of the fair market value of total gross assets, based on specified interest rates.
Subdivision 7 requires courts to construe this section liberally with regard to innocent successors. It applies to all asbestos claims filed against an innocent successor on or after the day following final enactment.