WILMINGTON, Del. - Chapter 11 debtor Energy Future Holdings Corp. (EFH) on July 13 said it has incorporated most suggestions made by a creditors' committee for the debtor's proposal to notify current and possible future asbestos claimants of a deadline to file proofs of claim but urges the Delaware federal bankruptcy court not to require EFH to publicize the bar date on television (In re: Energy Future Holdings Corp., No. 14-10979, D. Del. Bkcy.).
AUSTIN, Texas - A Texas judge on July 7 dissolved an insurer in liquidation and ordered the closing of the liquidation proceeding (State of Texas v. Western Indemnity Insurance Company, No. D-1-GV-03-002024, Texas, 261st Dist., Travis Co.).
WILMINGTON, Del. - There are only 24 unresolved non-asbestos claims pending against reorganized Chapter 11 debtor W.R. Grace & Co. and affiliates, out of more than 10,000 non-asbestos proofs of claim filed in the case, and a Delaware federal bankruptcy judge on July 10 gave the debtors another year to object to the remaining claims (In re: W.R. Grace & Co., et al., No. 01-01139, D. Del. Bkcy.).
WILMINGTON, Del. - A Delaware federal bankruptcy judge on July 7 gave Chapter 11 debtor Energy Future Holdings Corp. (EFH) more time to remove any of the more than 400 civil lawsuits filed against the debtor, including asbestos personal injury actions, to the bankruptcy court or a federal district court (In re: Energy Future Holdings Corp., No. 14-10979, D. Del. Bkcy.).
NEW YORK - Arguments made by a group of plaintiffs seeking relief from a ruling by the U.S. Bankruptcy Court for the Southern District of New York enforcing a sale order and injunction against suits against General Motors LLC (New GM) raise no issues that haven't already been considered and rejected by the court, New GM argues in a brief filed July 6 (In re: Chapter 11 Motors Liquidation Co., et al., f/k/a General Motors Corp., et al., No. 09-50026, S.D. N.Y. Bkcy.).
NEW YORK - A multiemployer pension plan failed to demonstrate the amount of unfunded benefits attributable to post-petition operation of a bankruptcy estate, the Second Circuit U.S. Court of Appeals ruled on July 2 in a summary order disallowing the plan's administrative expense claim for a portion of the estate's withdrawal liability (Food Employers Labor Relations Association and United Food and Commercial Workers Pension Fund v. The Great Atlantic & Pacific Tea Company, No. 14-3349-bk, 2nd Cir.; 2015 U.S. App. LEXIS 11402).
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 bar date, saying the debtor is already working with a creditors' committee on proposed forms of notice and a noticing plan for the bar date that will satisfy due process for current and future asbestos claimants (In re: Energy Future Holdings Corp., No. 14-10979, D. Del. Bkcy.).
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 for James T. McQueen v. Charles Kurz & Company Inc., et al., No. MDL 875, 11-30511, E.D. Pa.; 2015 U.S. Dist. LEXIS 81387).
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.
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 Co.).
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 who worked on the Chapter 11 case of ASARCO LLC (Baker Botts, LLP, et al. v. ASARCO, LLC, No. 14-103, U.S. Sup.).
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," the Official Committee of Asbestos Personal Injury Claimants says in a June 8 objection filed in North Carolina federal bankruptcy court (In re: Garlock Sealing Technologies, LLC, No. 10-31607, W.D. N.C. Bkcy.).
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 Insurers Insolvency Fund v. Beacon Roofing Supply, Inc., et al, No. 15-cv-12291, D. Mass.).
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 and asbestos claimants argue in a June 4 brief in the Third Circuit U.S. Court of Appeals (In re: Pittsburgh Corning Corporation [Mt. McKinley Insurance Company, et al. v. Pittsburgh Corning Corporation, et al.], No. 14-4329, 3rd Cir.).
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 versus insured (IVI) exclusion (American Casualty Company of Reading, P.A., et al., v. Morris Gelb, et al., No. 15335 653280/11, N.Y. Sup., App. Div., 1st Dept.; 2015 N.Y. App. Div. LEXIS 4643).
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 Co.).
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.).
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 the family-owned business from asbestos personal injury claims (In re: United Gilsonite Laboratories, 11-2032, M.D. Pa. Bkcy.).
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.).
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.
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 Motors LLC, No. 15-01354, S.D. Texas).
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 Sealing Technologies, LLC, No. 10-31607, W.D. N.C. Bkcy.).
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.
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.
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 case (In re: The Flintkote Co., et al., No. 04-11300, D. Del. Bkcy.).