People awaiting compensation from the Manville trust fund for asbestos victims will have to wait at least another month. U.S. District Judge Jack B. Weinstein in Brooklyn on Monday extended for 30 days a freeze on payments for asbestos-related diseases to allow completion of a plan to restructure the financially ailing trust. Weinstein said the extension would allow completion of a court-appointed reorganization plan for the trust, which has run out of money to pay new claims by thousands of workers made sick from inhaling asbestos fibers. But Leon Silverman, the bankruptcy court-appointed adviser supervising the reorganization, said ``it is almost impossible to conclude'' that the more than 130,000 pending claimants would receive the full value of their claims. The reorganization is designed to speed payments and alter the compensation scheme to process claims based on victims' health and financial need rather than when they file a claim. Weinstein last month set Monday as a deadline for the overhaul plan and froze spending during the process to prevent a further cash drain. The trust was created in 1988 as part of Manville Corp.'s bankruptcy court reorganization, a result of rising liability from lung cancer and other serious and fatal diseases caused by asbestos. The trust has paid $974 million to settle more than 22,000 cases, but still has 130,000 claims pending. A cash shortfall led the trust recently to say it would not be able to pay new claims until well into the 21st century. U.S. District Judge Thomas D. Lambros in Cleveland on Monday proposed consolidating pending Manville trust claims with a private consortium that has been negotiating settlements for other asbestos-makers. Under the proposal, the Center for Claims Resolution in Princeton, N.J., would be annexed to the legal system and directed by a board of judges with input from plaintiffs and defense lawyers and other parties involved. The center, which is funded by 20 asbestos defendants and insurance companies, has settled 36,000 claims in 18 months. Lambros said a court-affiliated center could minimize transaction costs and resolve pending claims until a long-term national settlement scheme is reached. Silverman said progress had been made toward providing ``meaningful funds in the near term to victims without sacrificing the long-term value of the Manville stock.'' The trust effectively owns 80 percent of Denver-based Manville, which must make annual payments to the trust beginning next year and is shielded from further legal liability for asbestos claims. Weinstein and Silverman supported continuing an injunction barring lawsuits against Manville, which would hurt the trust by depleting the value of Manville assets. But the judge criticized Manville, saying the company was unrealistic about its role in refinancing the trust. Weinstein in the past has suggested that the company should make new direct payments of more than $200 million to the trust. Manville has said its financial commitment ended with large contributions when the trust was created and its role is to strengthen Manville to bolster the trust's value. Manville Chief Executive Thomas Stephens said he was disappointed with Weinstein's comments. He said the company had offered to inject $500 million last November through a stock repurchase plan. In an interview, Stephens said the company last week recommended a plan to inject some cash into the trust, which in return would sell some Manville stock into the marketplace. ``We're fully aware and sympathetic of the needs of the claimants and are doing everything we can to optimize today's dollar and tomorrow's dollar,'' he said. The trust, based in Washington, is named in more than 100,000 lawsuits on the dockets of every federal district court and more than 500 state courts nationwide. The cash shortage at the trust had been anticipated, but made worse by more cases, larger payouts and quicker settlements than expected. Victims had received an average of $43,000 per claim, compared with estimates of $25,000. According to court documents, the trust has $93.2 million to pay $112.8 million in claims already settled. That money is frozen by the judge's order. Asbestos, a white mineral used for heat resistance and insulation, was widely used in shipbuilding, construction and other industries. Six federal judges are scheduled to meet later this week in Washington to discuss prospects for consolidating the asbestos litigation docket into a class action to speed resolution.
