The Aldrich Pump Texas Two-Step bankruptcy may have survived dismissal at the bankruptcy court level, but now the asbestos claimants have appealed to the Fourth Circuit following Judge Whitley's approval of their motion for direct appeal.1
In our original article, we prefaced that Johnson & Johnson (“J&J”) would likely utilize the Texas Two Step to attempt to resolve its tort liabilities related to talc powder.1 On October 12, 2021, J&J did just that. The company used Texas’s divisive merger statute to spinoff the talc liabilities into a new entity, LTL Management, LLC (“LTL”).
In In reLehman Brothers Inc., two creditors recently made an unsuccessful attempt to infuse Section 510(b) of the Bankruptcy Code with ambiguity and avoid the subordination of their claims. In re Lehman Brothers, Inc., 2014 WL 288571 (Bankr. S.D.N.Y.
The Bankruptcy Court for the Southern District of New York recently held that a state’s post-confirmation investigation of a debtor’s post-confirmation conduct does not violate a plan confirmation order that enjoins actions against the debtor. In re Velo Holdings, Inc. et al., 500 B.R. 693 (Bankr. S.D.N.Y. 2013).
The U.S. Bankruptcy Court for the Southern District of New York recently held that an ad hoc committee of bondholders, holding $162.5 in senior secured bonds, lacked standing to participate in the issuer-debtor’s Chapter 11 bankruptcy case. In re American Roads LLC, 2013 WL 4601006 (Bankr. S.D.N.Y.
In In re East End Development, LLC, 2013 WL 1820182 (Bankr. E.D.N.Y. Apr.