About NGCBI Trust

The National Gypsum Company ("Old NGC") was incorporated in Delaware in 1925 as an integrated, diversified manufacturer and supplier of products and services for the building, construction and shelter markets. Some of the products manufactured or sold by Old NGC contained asbestos. Many lawsuits were filed throughout the United States against Old NGC alleging asbestos-related bodily injury from exposure to asbestos or products that contained asbestos or property damage from the asbestos-containing products installed in buildings.

The resulting lack of liquidity from outside financial sources and from operations significantly contributed to the decision of Old NGC and its parent, Aancor oldings, Inc., to file voluntary petitions for relief under chapter 11 of the Bankruptcy Code on October 28, 1990 in the United States Bankruptcy Court for the Northern District of Texas, Case No. 390-37213-SAF. The bankruptcy court confirmed the Plan of Reorganization (the "1993 Plan") by order dated March 9, 1993.

Under the 1993 Plan, New NGC was formed as a new Delaware corporation to purchase from Old NGC the operating assets and business of the Gold Bond Building Products division, including the name "National Gypsum Company." The financial creditors became the owners of New NGC. Aancor Holdings, Inc. was merged into Old NGC, with Old NGC as the surviving entity. Old NGC was renamed Asbestos Claims Management Corporation ("ACMC").

The 1993 Plan established the NGC Settlement Trust to resolve and fund the asbestos liabilities, both bodily injury and property damage, of Old NGC. The Trust the owner of ACMC and certain other assets as provided by the 1993 Plan. All property damage claims were resolved by the NGC Settlement Trust.

After the bankruptcy, ACMC remained subject to the tort system and was represented by the Center for Claims Resolution ("CCR"). Funding from proceeds of settlements with insurers of Old NGC/ACMC, supplemented by additional funding from the NGC Settlement Trust, resolved a significant number of bodily injury claims through the CCR. However, in 1997, it became apparent that the NGC Settlement Trust would not have sufficient funding to pay all claims projected in the future. ACMC and the NGC Settlement Trust engaged in litigation with New NGC to determine New NGC's liability to future asbestos bodily injury claimants.

On June 16, 2000, ACMC withdrew from membership in the CCR because, by that time, ACMC's share of CCR settlement agreements was approaching the amount of the NGC Settlement Trust's remaining assets, including projected future insurance proceeds, available to pay asbestos disease claims. In July 2000, the U.S. Fifth Circuit Court of Appeals ruled that New NGC's liability to future claimants was limited to liability under state successor liability laws.

Pursuant to the 1993 Plan, ACMC's withdrawal from the CCR automatically enjoined the commencement of further lawsuits against ACMC by Asbestos Claimants and tolled all applicable statute of limitations related to the Asbestos Claims.

Negotiations with New NGC resulted in a settlement and agreement to fund a new qualified settlement fund established pursuant to section 524(g) of the Bankruptcy Code. As a result, on August 19, 2002, ACMC filed its original Plan of Reorganization under chapter 11 of the Bankruptcy Code. This Plan of Reorganization was confirmed on August 6, 2003. This Plan established a new trust, the NGC Bodily Injury Trust, with a mandate to resolve the remaining asbestos bodily injury liabilities of Old NGC/ACMC.