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mented immediately, it was a business decision as far as I could understand. Here was a recommendation, the corporation is in business to make, to provide jobs for people and make money for stockholders and they had to take into consideration the effects of everything they did, and if the application of a caution label identifying a product as hazardous would cut out sales, there would be serious financial implications. And the powers that be had to make some effort to judge the necessity of the label vs. the consequences of placing the label on the product.

The said cautionary label would literally destroy the company and if this would happen, jobs would also be at stake, including the acquisition of stakeholders their earnings. There was actually a dilemma on the warning they would provide against the bigger consequences that it would give.

These consequences would include the loss of the value of the shareholders and even for future finances. With the company loosing its investors and shareholders, a negative effect would cause from it which would include firstly, the loose of sales and eventually the loosing of the workers’ jobs.

Investors, just like the company’s workers, are also its lifeblood. The money that comes in from these stakeholders would cover the numerous finances of expenses for the company. According to Doyle (2000), the basic principle of the shareholder value is that the company’s share price is determined by the sum of its anticipated cash flows, adjusted by an interest rate known as the cost of capital. Investors that maintain the activities of the company also expect the return of their investment from the interests that the company earns.

With the rising lawsuits that Raybestos-Manhattan has faced, the shareholder value has definitely affected the company big time. Financial loss was the only road that the company was then taking since the option of settlement was taken for the workers. The decrease of the shareholder value reflects the decrease of the company’s value.

The declaration of the company of its bankruptcy allowed restructuring the company back to its feet. With the great amount of money that they are loosing due to the provision of settlement and punitive damages, financial loss in the company is evident.

Bankruptcy law is a federal legal process for debtors seeking to eliminate or repay their debts (HG.org, 2010). Corporate bankruptcy law offered a means of rehabilitating companies so that they could compete successfully in more competitive markets (Halliday, 1998).

As the company was given the chance to stop the claiming of the people who filed for lawsuits, an agreement was to set up a trust fund valued at approximately $2.5 billion to pay Manville’s asbestos claimants. To fund the trust, shareholders were required to surrender half the value of their stock, and the company had to give up much of its projected earnings over the next 25 years (Mokhiber, 1988).

This was then the new plan that the company, which is now called as Jhons-Manville, was able to come-up in the event that they were being considered for the restructure. It also gave way to the option to abandonment of its projects and even part of its assets.

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