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WCI Establishes Chinese Drywall Trust

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WCI Communities Inc., a Florida home builder that has acknowledged using Chinese Drywall has been given the go-ahead to establish a to help homeowners lpursue claims against the parties responsible for the tainted drywall in their homes.

WCI, which filed for Chapter 11 bankruptcy protection last August, said earlier this year that it  believes it built at least 200 homes using the material.  Just a  month prior to its bankruptcy filing, the company said it was setting aside $11 million for homes that needed air conditioning coil replacement.

Earlier this week, Judge Kevin J. Carey approved the firm’s reorganization plan, paving the way for WCI to emerge from bankruptcy. Included in the plan is the Chinese Drywall Trust, which WCI will fund with $900,000.  That money will help to offset the cost of litigation against insurers and other companies involved in Chinese drywall disaster.

Consumers in 24 states have filed a total of 1046 Chinese drywall complaints with the Consumer Products Safety Commission (CPSC). Gases emitted from the drywall are being blamed for significant property damage, including damage to HVAC systems, smoke detectors, electrical wiring, metal plumbing components, and other household appliances. These gases also produce a sulfurous odor, similar to fireworks or rotten eggs, that permeates homes, and cause metals, including air conditioning coils and even jewelry, to corrode.

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