Keene, Inc.

Keene was a diversified manufacturer of industrial and aerospace products that became seriously embroiled in asbestos-related litigation. Keene's asbestos liability arose from a 1968 acquisition of a small fabricator of acoustical ceilings, ventilation systems and thermal insulation products, a small percentage of which contained some asbestos. This company ceased using asbestos in 1972, and Keene sold the business in 1974.

Despite this tangential involvement with asbestos, Keene became the target of a multitude of lawsuits. The liabilities and litigation expenses associated with these lawsuits overwhelmed the company, and ultimately caused it to file for bankruptcy in the mid-1990's.

Gordian Group was engaged by Keene to assist in its reorganization efforts, including the development of a plan of reorganization, and in negotiations with the attorneys representing the asbestos claimants, and with other constituencies. Together with counsel, Gordian Group negotiated a solution that provided for Keene's old equity constituencies to receive almost half of the reorganized company's equity. This stands in stark contrast to many other asbestos-related cases in which the old equity constituencies were wiped out.