Category: Bankruptcy

On January 30, the U.S. Court of Appeals for the Third Circuit dismissed the talc bankruptcy filing of Johnson & Johnson’s subsidiary, LTL Management, LLC. After hearing arguments in September, the Third Circuit ultimately reversed the decision from New Jersey Bankruptcy Court and held that LTL was not in the financial distress required because of the value and quality of its assets and was therefore ineligible to petition the bankruptcy court for relief under Chapter 11.

Johnson & Johnson’s plan, as a corporate restructuring …

U.S. Bankruptcy Court for the District of Connecticut, May 25, 2022

In this bankruptcy action, Judge Manning described The Nash Engineering Company’s (debtor) Chapter 7 case as “anything but ordinary.” Indeed, Judge Manning noted that over 98% of the creditors are contingent, disputed, and unliquidated asbestos personal injury tort claimants. Following two status conferences, the court issued an Order to Show Cause as to why this case should not be dismissed as per 11 U.S.C. §§ 305 or 707(a).

After receiving several responses, the court …

U.S. Bankruptcy Court for the Western District of North Carolina, October 14, 2021

On October 14, 2021, LTL Management LLC, an indirect subsidiary of Johnson & Johnson, filed papers in connection with pursuing Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Western District of North Carolina, Charlotte Division. According to its informational brief, LTL Management seeks to “resolve permanently all mass tort claims relating to its cosmetic talc products in a manner that is efficient and equitable to all parties, including current …

United States Bankruptcy Court, D. Maryland. March 02, 2020

The plaintiffs were various entities who filed for bankruptcy protection under Chapter 11 in 2001. Their bankruptcy confirmation order set a bar date for the filing of claims by creditors against the entities. Nearly 16 years later, asbestos claimants filed claims for exposure to asbestos in Pennsylvania.  The plaintiffs then filed suit against the asbestos claimants as an adversarial bankruptcy proceeding. Motions for summary judgment were filed by both sides.

The court first set out to …

United States Court of Appeals Third Circuit, February 18 2020

DELAWARE – The appellants are latent asbestos claimants who did not file by the bar date set by Chapter 11 bankruptcy but who were subsequently diagnosed with mesothelioma. The appellee is Energy Future Holdings Corporation (EFH), which was a holding company for several energy properties. Those subsidiaries became defunct long ago as a result of asbestos litigation. EFH also filed for bankruptcy as a result of vast sums of money owed to asbestos debtors. The …