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Mealey's Bankruptcy - Creditors Hire Expert For Energy Future's Asbestos Claim Notice Procedures

WILMINGTON, Del. - A Delaware federal bankruptcy judge on April 14 authorized a creditors' committee in the Chapter 11 case of Energy Future Holdings Corp. (EFH) to hire an asbestos noticing expert to evaluate the debtor's proposed procedures for notifying asbestos personal injury claimants of...

Mealey's Bankruptcy - Cleanroom Maker, Insurer To Pay $1M For Victims In Fungal Meningitis Outbreak

BOSTON - The manufacturer of pharmaceutical cleanrooms and its insurer will pay $1 million to settle allegations that defective cleanrooms contributed to a nationwide outbreak of fungal meningitis, according to a settlement agreement proposed April 20 by a bankruptcy trustee (In Re: New England Compounding...

Mealey's Bankruptcy - GM Plaintiffs Tell MDL Judge They Will Appeal Bankruptcy Court Order Barring Suits

NEW YORK - Owners of vehicles containing defective ignition switches on April 29 told the judge overseeing multidistrict litigation against General Motors LLC (New GM) that they intend to appeal a ruling by the U.S. Bankruptcy Court for the Southern District of New York finding that the bulk of ignition...

Mealey's Bankruptcy - Liquidator Asks Court To Approve Recommendation Of Payment To Service Provider

CHICAGO - The liquidator of an insolvent insurer told an Illinois court on April 30 that a claim by a company that had provided services to the insolvent insurer's insureds should be paid, including certain post-judgment interest calculated at Texas' statutory post-judgment interest rate (People...

Mealey's Bankruptcy - Insolvent Insurer's Liquidator Moves To Remand Suit Against Reinsurers

CONCORD, N.H. - The liquidator of an insolvent insurer told a federal court in New Hampshire on May 1 that two reinsurers waived their right to remove an asbestos and environmental claims reinsurance dispute from the state court by agreeing to a service of suit clause in the underlying reinsurance agreements...

Mealey's Bankruptcy - New Texas Insurance Commissioner Succeeds Last Commissioner As Liquidator

AUSTIN, Texas - The special deputy receiver of an insolvent insurer informed a Texas court on May 4 that a newly appointed state insurance commissioner has taken over as liquidator of the insolvent insurer (The State of Texas and the Texas Department of Insurance v. Vesta Fire Insurance Corporation,...

Mealey's Bankruptcy - Flintkote Reaches $1.7 Million Settlement With Travelers For Coverage Disputes

WILMINGTON, Del. - Chapter 11 debtor The Flintkote Co. on May 4 sought approval in Delaware federal bankruptcy court of a $1.7 million settlement of insurance coverage disputes with Travelers Casualty and Surety Co., the 20th settlement the debtor has reached with insurers in its decade-long bankruptcy...

Mealey's Bankruptcy - Texas House Approves Asbestos Trust Disclosure Bill

AUSTIN, Texas - The Texas House of Representatives on May 11 voted 126-11 to approve a bill that would require asbestos and silica personal injury claimants suing to recover damages for their diseases to file all claims they have with asbestos and silica bankruptcy trusts before a trial is held.

Mealey's Bankruptcy - House Subcommittee Passes Asbestos Trust Disclosure Bill

WASHINGTON, D.C. - The U.S. House Judiciary Committee on May 14 approved H.R. 526, the Furthering Asbestos Claim Transparency Act of 2015 (FACT Act), by a vote of 19-9.

Mealey's Bankruptcy - Garlock Releases All Sealed Evidence From Mesothelioma Hearing

CHARLOTTE, N.C. - All unsealed materials from last year's highly publicized mesothelioma liability ruling in the Chapter 11 case of Garlock Sealing Technologies LLC were made public May 18 in a North Carolina federal bankruptcy, with all personal information of claimants redacted (In re: Garlock...

Mealey's Bankruptcy - Plaintiffs Tell Federal Court Claims Against GM Are Not Barred By Bankruptcy Order

HOUSTON - A group of 29 owners of cars manufactured by General Motors LLC (New GM) filed suit in federal court in Texas May 19, asserting personal injury and/or wrongful death claims stemming from accidents linked to defects in their cars, including ignition-switch defects (Dana Danley, et al. v. General...

Mealey's Bankruptcy - Texas Asbestos Trust Disclosure Bill Heads To Governor For Signing

AUSTIN, Texas - The Texas Senate on May 22 overwhelmingly adopted a bill that would force asbestos and silica personal injury claimants to file any claims they have with bankruptcy trusts before a trial could proceed on their tort system claims.

Mealey's Bankruptcy - Insolvent Insurer's Receiver Asks For Approval Of $15M Asbestos Settlement

AUSTIN, Texas - The special deputy receiver of an insolvent insurer asked a Texas court on May 26 to approve the $15 million settlement of certain asbestos related bodily injury claims (State of Texas v. Highlands Insurance Company, No. D-1-GV-03-004537, Texas, 53rd Dist., Travis Co.).

Mealey's Bankruptcy - Bankruptcy Court Closes United Gilsonite Laboratories' Chapter 11 Case

WILKES-BARRE, Pa. - United Gilsonite Laboratories (UGL), the maker of home improvement products Drylock sealant and ZAR wood finish, emerged from Chapter 11 protection on May 28 with the issuance by a Pennsylvania federal bankruptcy judge of a final decree, closing a case filed four years ago to protect...

Mealey's Bankruptcy - Ancillary Receiver For Insolvent Insurer Appointed In New York Court

NEW YORK - A New York justice on May 28 appointed the state's superintendent of financial services as the ancillary receiver of an insolvent Oklahoma insurer licensed to do business in New York (In the Matter of Red Rock Insurance Company, No. 451197/15, N.Y. Sup., New York Co.).

Mealey's Bankruptcy - New York Justice Asks For Input Regarding Termination Of Ancillary Receivership

NEW YORK - A New York justice on June 2 issued an order to show cause asking for responses regarding the proposed termination of the ancillary receivership of an insolvent Ohio insurer (In the Matter of the Ancillary Receivership of Credit General Insurance Company, No. 400160/01, N.Y. Sup., New York...

Mealey's Bankruptcy - Merger Litigation, Adversary Proceeding Are 'Wholly Different,' N.Y. Panel Says

NEW YORK - A New York appeals panel on June 4 rejected a directors and officers liability insurer's argument that a merger litigation and an adversary proceeding constitute one continuous claim, finding that coverage for the adversary proceeding is not subject to a 2006-2007 policy's insured...

Mealey's Bankruptcy - Insurers Lack Standing To Oppose Pittsburgh Corning's Reorganization, Debtor Says

PHILADELPHIA - Two insurance companies trying to overturn confirmation of Pittsburgh Corning Corp.'s (PCC) Chapter 11 plan of reorganization do not have standing to object to the plan and present objections that lack merit, so the confirmation ruling should be affirmed, PCC, its corporate shareholders...

Mealey's Bankruptcy - Company Removes Fund's Suit To Recover Asbestos Claims To Federal Court

BOSTON - A company being sued in a number of asbestos-related bodily injury lawsuits removed a case brought by a state's insurance insolvency fund seeking to recover for the asbestos claims paid on behalf of a pair of insolvent insurer to a federal court in Massachusetts on June 9 (Massachusetts...

Mealey's Bankruptcy - Claimants, Trust Say Garlock's Bid For Information Goes Too Far

CHARLOTTE, N.C. - Discovery proposed by Chapter 11 debtor Garlock Sealing Technologies LLC seeking information from the Manville Personal Injury Settlement Trust on the more than 90,000 asbestos claimants in Garlock's bankruptcy case "is patently excessive and should not be permitted,"...

Mealey's Bankruptcy - Supreme Court: Bankruptcy Lawyers Not Entitled To Fees For Defending Fee Requests

WASHINGTON, D.C. - The U.S. Bankruptcy Code does not allow bankruptcy courts to award fees to attorneys for successfully defending their fee applications, the U.S. Supreme Court held June 15 in a 6-3 decision, affirming a Fifth Circuit U.S. Court of Appeals ruling denying a $5 million fee award to attorneys...

Mealey's Bankruptcy - Justice Approves Insolvent Insurer's $19 Million Asbestos-Related Settlement

CONCORD, N.H. - A New Hampshire justice on June 15 approved a $19 million asbestos bodily injury related settlement between a reorganized company's trust and the liquidator of an insolvent insurer (In the Matter of the Liquidation of The Home Insurance Company, No. 03-E-0106, N.H. Sup., Merrimack...

Mealey's Bankruptcy - Texas Governor Signs Asbestos Trust Disclosure Bill

AUSTIN, Texas - Texas Gov. Greg Abbott on June 16 signed a bill that will force asbestos and silica personal injury claimants to file any claims they have with bankruptcy trusts before a trial could proceed on their tort system claims, according to a report by the Texas Legislature.

Mealey's Bankruptcy - No Bad Faith In Omission Of Asbestos Action From Bankruptcy, Judge Says

PHILADELPHIA - A man's omission in his bankruptcy filing of an asbestos action under an eight-year stay does not evidence bad faith, but the trustee still gets the first shot at prosecuting the since-reinstated claim, a federal judge in Pennsylvania held June 23 (Willard E. Bartel, administrator...

Mealey's Bankruptcy - Energy Future Holdings Refuses To Give Asbestos Data To Law Firms

WILMINGTON, Del. - Chapter 11 debtor Energy Future Holdings Corp. (EFH) on June 26 denied a request by nine law firms representing tens of thousands of asbestos claimants to provide information on EFH and affiliates about their asbestos use and products and to delay a hearing on setting an asbestos claims...