Judge Halts Federal-Mogul's Period of Exclusivity, Opens Doors for Reorganization Plan

WILMINGTON, Del. - A federal judge ended bankrupt auto part maker Federal-Mogul's period of exclusivity, allowing for any of company's unsecured creditors to file a reorganization plan in the company's Chapter 11 proceedings. In re: Federal-Mogul Global, Inc., et al. No. 01-10578 (D. Del., Bankr.).

Judge Randall Newsome of the U.S. Bankruptcy Court for the District of Delaware announced Oct. 1 that he would not extend Federal-Mogul Corporation's exclusivity. The company had originally filed a plan that would give asbestos claimants 51 percent of the company and bondholders the remaining 49 percent.

"The debtors are hereby directed not to make …