Mealey's Bankruptcy - GM Tells MDL Judge California District Attorney's Suit Belongs In MDL

NEW YORK - A suit brought By Orange County, Calif., District Attorney Tony Rackauckas on behalf of California owners of vehicles manufactured by General Motors LLC (New GM) belongs in the GM ignition-switch multidistrict litigation pending in the U.S. District Court for the Southern District of New York...

Mealey's Bankruptcy - Bankruptcy Judge Unseals Record In Garlock's Estimation Proceeding

CHARLOTTE, N.C. - The North Carolina federal bankruptcy judge overseeing Garlock Sealing Technologies LLC's Chapter 11 case on Oct. 16 unsealed the entire record of last year's hearing to estimate Garlock's asbestos liability, saying he should have kept the proceeding open to the public in...

Mealey's Bankruptcy - Specialty Products' Disclosure Statement OK'd; Plan Calls For 2 Asbestos Accounts

WILMINGTON, Del. - U.S. Bankruptcy Judge Peter J. Walsh of the District of Delaware on Oct. 21 approved the disclosure statement for Chapter 11 debtor Specialty Products Holding Corp.'s plan of reorganization, which includes establishment of two asbestos personal injury trust accounts totaling nearly...

Mealey's Bankruptcy - Former Mineworkers Look To Sue W.R. Grace Insurer For Negligence, Bad Faith

WILMINGTON, Del. - Two men suffering from asbestos disease who worked at W.R. Grace & Co.'s mine and mill in Libby, Mont., sought authorization Oct. 21 in Delaware federal bankruptcy court to file a negligence and bad faith suit in state court against one of W.R. Grace's insurers, even though...

Mealey's Bankruptcy - New York Justice Asks For Input On Possible Liquidation Of Insolvent Insurer

NEW YORK - A New York justice on Oct. 27 issued an order to show cause why Eveready Insurance Co. should not be placed into liquidation (In the Matter of the Eveready Insurance Company, No. 160307/2014, N.Y. Sup., New York Co.).

Mealey's Bankruptcy - Asbestos Committee Says Garlock Committed Fraud At Its Estimation Hearing

CHARLOTTE, N.C. - The committee representing asbestos claimants in Garlock Sealing Technologies LLC's bankruptcy case on Nov. 7 accused Garlock of fraudulently withholding evidence for last year's hearing to estimate Garlock's asbestos liability and asked a North Carolina federal bankruptcy...

Mealey's Bankruptcy - 7th Circuit Affirms Foreign Reinsurer Cannot Be Compelled To Arbitrate Dispute

CHICAGO - A Seventh Circuit U.S. Court of Appeals panel on Nov. 7 affirmed a lower court decision and said certain reinsurance agreements merely show what debt is allegedly owed by a reinsurer but do not transfer the right to arbitrate that debt to the alleged assignee of certain rights of an insolvent...

Mealey's Bankruptcy - Judge Approves $5.2B Settlement To Remediate Superfund Sites, Uranium Mines

NEW YORK - A federal judge in New York on Nov. 10 adopted a bankruptcy judge's report and recommendation suggesting the final approval of a proposed $5.2 billion settlement that would resolve claims brought by the federal government against Kerr-McGee Corp. and its parent company Anadarko Petroleum...

Mealey's Bankruptcy - Consent Order For Access To Claimant Information Presented To District Court

CHARLOTTE, N.C. - A North Carolina federal judge on Nov. 12 remanded a request by Ford Motor Co. and 11 other parties for access to asbestos claimant information contained in statements filed in Garlock Sealing Technologies LLC's Chapter 11 case under Federal Rule of Bankruptcy Procedure 2019 so...

Mealey's Bankruptcy - Feeder Funds To Pay Nearly $500M To Madoff Liquidation Trustee

NEW YORK - Two feeder funds of Bernard L. Madoff Investment Securities LLC (BLMIS) will pay nearly $500 million to settle all claims associated with their role in Madoff's massive Ponzi scheme, according to court documents filed Nov. 17 in New York federal bankruptcy court (Securities Investor Protection...

Mealey's Bankruptcy - Justice Seeks Input Regarding Petition To Liquidate Insurer

NEW YORK - A New York justice issued an order to show cause on Nov. 14 asking for responses on why a New York insurer should not be liquidated (In the Matter of UHAB Mutual Insurance Company, No. 452618/2014, N.Y. Sup., New York Co.).

Mealey's Bankruptcy - Petitioner Asks 7th Circuit To Rehear Appeal Of Dismissal Of Arbitration Case

CHICAGO - The alleged assignee of certain rights of an insolvent insurer asked the Second Circuit U.S. Court of Appeals on Nov. 21 for a rehearing en banc of the court's decision denying the appeal of a lower court's dismissal of a motion to compel an international reinsurer to arbitrate a payment...

Mealey's Bankruptcy - Reliance Liquidator Asks Court To Approve $6.5 Million Reinsurance Settlement

HARRISBURG, Pa. - The liquidator of Reliance Insurance Co. applied with a Pennsylvania court on Nov. 24 for approval of a settlement and commutation agreement with an excess workers' compensation reinsurer (In re: Reliance Insurance Co. in liquidation, No. 1 REL 2001, Pa. Cmwlth.).

Mealey's Bankruptcy - Federal Judge Finds Ruling For Banks Did Not Violate Bankruptcy Stay

BOISE, Idaho - After finding that an order granting summary judgment for several banks and mortgage entities was not entered in violation of an automatic stay related to a bankruptcy petition, an Idaho federal judge on Nov. 26 found that the order was not void and refused to reconsider the decision ...

Mealey's Bankruptcy - Judge Denies Motion To Stay Judgment In Favor Of 2 Insolvent Insurers

SACRAMENTO, Calif. - A federal judge in California on Dec. 2 denied the motion of two insolvent insurers' insured to stay a $90,000 judgment while awaiting a decision in a case pending in a New York liquidation proceeding (Dale M. Wallis, D.V.M., et al. v. Centennial Insurance Company Inc. and Atlantic...

Mealey's Bankruptcy - United Gilsonite's Reorganization Plan, Insurer Settlements Approved

WILKES-BARRE, Pa. - A Pennsylvania federal bankruptcy judge on Dec. 8 confirmed a plan of reorganization for Chapter 11 debtor United Gilsonite Laboratories' (UGL) that establishes a trust containing more than $35 million to resolve current and future asbestos personal injury claims (In re: United...

Mealey's Bankruptcy - Bankruptcy, Federal Courts Approve Specialty Products' Reorganization Plan

WILMINGTON, Del. - The Delaware federal court and federal bankruptcy court on Dec. 10 both approved a plan of reorganization for Chapter 11 debtor Specialty Products Holding Corp. and affiliates after the plan, which establishes two asbestos personal injury trusts totaling nearly $800 million, was accepted...

Mealey's Bankruptcy - Bankruptcy Judge Rejects Claimants' Bid To Reopen Estimation Hearing Record

CHARLOTTE, N.C. - A North Carolina federal bankruptcy judge on Dec. 9 denied a request by the committee representing asbestos claimants in Garlock Sealing Technologies LLC's bankruptcy case to reopen the record of the hearing held to estimate Garlock's asbestos liability, rejecting the committee's...

Mealey's Bankruptcy - Yarway Proposes $325 Million Trust To Resolve Bankruptcy

WILMINGTON, Del. - Chapter 11 debtor Yarway Corp. and its corporate parent will pay $325 million to fund an asbestos personal injury trust in return for protection from all claims alleging that Yarway's products caused asbestos injuries, according to a term sheet filed Dec. 12 in Delaware federal...

Mealey's Bankruptcy - Housing Authority Fails To Prove Danger Of Asbestos Tiles, G-I Holdings Says

NEWARK, N.J. - The New York City Housing Authority's (NYCHA) attempt to recoup $500 million from reorganized building products company G-I Holdings Inc. for abatement of asbestos property damage should be rejected because the authority cannot support its allegations that asbestos products installed...

Mealey's Bankruptcy - GM Vehicle Owners Ask Bankruptcy Court Not To Enforce Bankruptcy Shield

NEW YORK - Enforcement of a sale order and injunction entered as part of General Motors LLC's (New GM) acquisition of the assets of General Motors Corp. (Old GM) will violate the due process rights of plaintiffs in the ignition switch litigation against New GM, a group of GM vehicle owners argue...

Mealey's Bankruptcy - Judge Stays Insurance Coverage Suit After Insurer Is Placed In Liquidation

HOUSTON - A federal judge in Texas on Dec. 16 stayed a suit against an insolvent insurer, noting that the liquidating court had ordered the end of all litigation against the insolvent insurer (Air Tropiques, S.P.R.L. v. Northern & Western Insurance Company, Ltd., et al., No. 13-cv-01438, S.D. Texas...

Mealey's Bankruptcy - Florida Panel Affirms Order Compelling Appraisal Of Alleged Sinkhole Damage

DAYTONA BEACH, Fla. - A Florida appellate panel on Dec. 12 affirmed a lower court decision compelling appraisal of alleged sinkhole damage to a home insured by an insolvent insurer (Florida Insurance Guaranty Association v. Kenneth Sill, et al., No. 5D13-3363, Fla. App., 5th Dist.; 2014 Fla. App. LEXIS...

Mealey's Bankruptcy - New York Justice Orders Liquidation Of Insurer With Consent Of Insurer's Board

NEW YORK - A New York justice on Dec. 16 granted New York's superintendent of financial services' petition for an order to liquidate an insurer (In the Matter of UHAB Mutual Insurance Company, No. 452618/2014, N.Y. Sup., New York Co.).

Mealey's Bankruptcy - Turner & Newell Can't Depose Asbestos Trust Official, Rhode Island Judge Says

PROVIDENCE, R.I. - Any evidence gleaned from deposing an asbestos trust representative would be cumulative of and more easily obtained through the trust's governing documents, a Rhode Island judge held Dec. 16 (Maureen Gallagher, et al. v. American Insulated Wire Corp., et al., No. PC11-5269, Constance...