The debt of several asbestos companies fell as legislation that would create a $140 billion trust fund to compensate victims of asbestos did not get enough votes in the Senate to waive a budget objection raised about the legislation. The final vote on the bill, known as the Fairness in Asbestos Injury Resolution Act of 2005, was 58 to 41.
Armstrong World Industries was one of the most affected names because of its large amount of asbestos liabilities, said a trader. Its debtor-in-possession revolving credit fell eight-10 points to trade in the 64-67 range. The debt of other asbestos names such as W.R. Grace, USG and Owens Corning also fell a couple of points. W.R. Grace's revolver declined to the 135-137 range, USG's revolver fell to 139, while Owens Corning's revolver dropped to the 149-152 context. A spokeswoman for Armstrong declined to comment on the failure of the asbestos bill, except to say that the company continues to support the Fair Act.