Chinese Drywall

South Florida Business Journal – Paul Brinkmann

A bankruptcy judge has approved revisions to a proposed plan for WCI Communities to emerge from bankruptcy, which includes a trust account for claims against insurers or suppliers regarding defective Chinese drywall.

U.S. Bankruptcy Judge Kevin Carey approved what is known as a Disclosure Statement for the revisions to the proposed bankruptcy plan on Friday.

“The revised bankruptcy plan was the product of negotiations and is the first step at finding a solution for homeowners impacted by defective drywall,” said Mike Ryan, an attorney in Fort Lauderdale who represents dozens of homeowners with Chinese drywall claims.

“Under the proposed plan, the trust will be empowered to bring lawsuits aimed at obtaining the maximum amount of recovery to fund remediation and the pay for the damages to the homeowners,” Ryan said.

http://www.bizjournals.com/southflorida/stories/2009/07/13/daily86.html