WILKES-BARRE, Pa. - United Gilsonite Laboratories (UGL) on Aug. 14 filed a Chapter 11 plan of reorganization in federal bankruptcy court that includes establishment of a trust to benefit asbestos personal injury claimants that will be funded in part by $19 million in cash from the debtor and its shareholders, plus proceeds from insurance policies, according to the plan and its disclosure statement (In re: United Gilsonite Laboratories, 11-2032, M.D. Pa. Bkcy.).
WILMINGTON, Del. - A Delaware federal bankruptcy judge on Aug. 12 granted a request by health insurer Aetna Inc. to access statements and exhibits filed in the Specialty Products Holding Corp. bankruptcy case to pursue subrogation claims against the debtor for payments made to asbestos personal injury claimants (In re: Specialty Products Holding Corp., et al., No. 10-11780, D. Del., Bkcy.).
NEW YORK - The liquidator of Capital Mutual Insurance Co. (CMIC) issued a notice in a New York state court on Aug. 12 regarding his request to close the insolvent insurer's liquidation proceeding (In the Matter of the Liquidation of Capital Mutual Insurance Company, No. 402044/00, N.Y. Sup., New York Co.).
BOSTON - An asbestos bankruptcy trust asserting a widow's claims told a Massachusetts federal judge on Aug. 8 that its bankruptcy plan explicitly permitted a $9.3 million verdict against a subsidiary (Katherine Lydon, et al. v. T&N Limited, et al., No. 12-10013, D. Mass.).
LANSING, Mich. - A Michigan state judge on Aug. 6 granted the liquidator of Cadillac Insurance Co.'s petition to end the liquidation proceedings (Bill Schuette, Attorney General of the State of Michigan, ex rel., et al. v. Cadillac Insurance Company, No. 89-64126-CR, Mich. Cir., Ingham Co.).
OKLAHOMA CITY - A federal judge in Oklahoma on Aug 6 said he would not reopen a professional negligence case against an insolvent insurer's auditors after earlier closing the case after a reached settlement (State of Oklahoma, ex rel. John Doak, Insurance Commissioner, as Receiver for Pegasus Insurance Company, Inc., v. Estate of William D. Thornell, et al., No. 12-cv-00708, W.D. Okla.).
NEW YORK - A New York justice on Aug. 4 issued an order to show cause why the liquidation of Galaxy Insurance Co. should not be closed (In the Matter of Galaxy Insurance Co., No. 407611/94, N.Y. Sup., New York Co.).
NEW YORK - General Motors LLC (New GM) filed two motions in the U.S. Bankruptcy Court for the Southern District of New York on Aug. 1 seeking to invoke the bankruptcy shield against suits alleging injuries suffered in accidents that occurred before its purchase of the assets of the bankrupt General Motors Corp. (Old GM) and economic losses related to vehicles or auto parts manufactured by Old GM (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.).
SAN FRANCISCO - Two more insurance companies have settled their coverage disputes with Chapter 11 debtor Plant Insulation Co. under agreements approved Aug. 1 by a California federal bankruptcy judge that will add $5.9 million to Plant's asbestos personal injury trust (In re Plant Insulation Company, No. 09-31347, N.D. Calif. Bkcy.).
CHARLOTTE, N.C. - At the direction of a federal judge, the North Carolina federal bankruptcy judge overseeing the Chapter 11 case of Garlock Sealing Technologies LLC on Aug. 1 established a protocol for allowing public access to sealed documents and testimony from Garlock's asbestos liability hearing (In re: Garlock Sealing Technologies, LLC, No. 10-31607, W.D. N.C. Bkcy.).
NEW YORK - Claims in an ignition-switch defect class action involve both Old (presale) GM and New (post-sale) GM and are therefore subject to stay, the bankruptcy judge overseeing General Motors Corp.'s (GM) Chapter 11 case ruled July 30 (In re: Chapter 11 Motors Liquidation Co., et al., f/k/a General Motors Corp., et al., No. 09-50026, S.D. N.Y. Bky.).
MEDINA, Ohio - The corporate parent of Chapter 11 debtors Specialty Products Holding Corp. and Bondex International Inc. announced July 28 that it has reached an agreement with asbestos personal injury claimants under which the parents will pay $797.5 million to fund a trust to resolve current and future claims against the debtors.
CHARLOTTE, N.C. - A North Carolina federal judge on July 23 reversed rulings by the bankruptcy judge in the Chapter 11 case of Garlock Sealing Technologies LLC sealing evidence and filings and excluding the news media from the hearing to estimate Garlock's liability for asbestos personal injury claims, finding that the bankruptcy judge erred in issuing broad protective orders that prevented public access to the hearing (Legal Newsline v. Garlock Sealing Technologies LLC, No. 13-464, W.D. N.C.).
NEW YORK - The Second Circuit U.S. Court of Appeals on July 22 reinstated a federal bankruptcy court ruling requiring two insurance companies to pay $510 million to asbestos personal injury plaintiffs under decades-old settlements, finding that conditions precedent to payment under the settlement agreements were satisfied (In re: Johns-Manville Corp., [Common Law Settlement Counsel, Statutory and Hawaii Direct Action Settlement Counsel and Asbestos Personal Injury Plaintiffs v. The Travelers Indemnity Company and Travelers Casualty and Surety Company, FKA Aetna Casualty and Surety Company], Nos. 12-1094, 12-1150 and 12-1205, 2nd Cir.).
WILMINGTON, Del. - A Delaware federal bankruptcy judge on July 18 confirmed a Chapter 11 plan of reorganization for Overseas Shipholding Group Inc. (OSG) under which personal injury claims, including asbestos claims, will be unimpaired and remain assertable against the reorganized company (In Re: Overseas Shipholding Group, Inc., No. 12-20000, Chapter 11, D. Del. Bkcy.).
WILMINGTON, Del. - Six insurance companies, having lost their recent bid to reopen the Chapter 11 case of T H Agriculture & Nutrition LLC (THAN) so they could audit the THAN asbestos trust for evidence of fraud, filed a complaint on July 2 in Delaware state court, alleging that THAN has breached a five-year-old settlement agreement and its plan of reorganization by blocking the insurers' attempts to audit the trust (AIU Insurance Company, et al. v. Philips Electronics North America Corporation, et al., No. 9852, Del. Chanc.).
CHARLESTON, W.Va. - According to a June 24 motion to approve a settlement filed in the U.S. District Bankruptcy Court for the Southern District of West Virginia, an insurer and its bankrupt insured responsible for a January 2014 spill of 4-methylcyclohexane methanol into West Virginia's Elk River have agreed to a settlement in which the insurer will buy back an excess policy for $2 million and pay for covered losses unrelated to the spill up to $1 million (In re: Freedom Industries Inc., No. 14-20017, S.D. W.Va. Bkcy.).
DETROIT - A group of foundations involved in community philanthropy for the bankrupt City of Detroit on June 13 filed a brief in the U.S. Bankruptcy Court for the Eastern District of Michigan supporting their motion to quash subpoenas filed by creditors Syncora Capital Assurance Inc. and Syncora Guarantee Inc. (the Syncora parties) (City of Detroit, No. 13-53846, Chapter 9, E.D. Mich. Bkcy.).
NEW YORK - The trustee in the Chapter 11 bankruptcy of MF Global Inc. (MFGI), the customer investment affiliate of MF Global Holdings Inc. (MFGH), on June 16 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York, arguing that $25 million in claims filed by former employees of MFGI should be disallowed and expunged (In Re: MF Global Inc., 11-2790, Chapter 11, S.D. N.Y. Bkcy.).
NEW YORK - The Residential Capital Borrower Claims Trust on June 16 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York, contending that a couple's $32.85 million claim against the bankruptcy estate should be disallowed because it was not timely filed and it demonstrates conduct that was "dilatory and in bad faith" (In Re: Residential Capital LLC, No. 12-12020, Chapter 11, S.D. N.Y. Bkcy.).
LOS ANGELES - The California Supreme Court on June 11 declined Crane Co.'s petition arguing that a judge could reduce a judgment by amounts allegedly available to the plaintiff through asbestos bankruptcy trusts (Elaine M. Paulus, et al. v. Crane Co., No. S218222, Calif. Sup.).
WASHINGTON, D.C. - The U.S. Supreme Court on June 12 ruled that funds held in inherited individual retirement accounts (IRAs) are not "retirement funds" within the meaning of the Bankruptcy Code because they represent an opportunity to use money immediately as opposed to a fund of retirement savings (Brandon Clark, et al. v. William Rameker, No. 13-299, Chapter 7, U.S. Sup.).
DALLAS - The foreign representative of bankrupt bitcoin exchange operator MtGox Co. Ltd. and creditor CoinLab Inc. on June 9 reached a stipulated agreement under which CoinLab agrees that it will not object to MtGox's Chapter 15 bankruptcy status or its choice of venue (In Re: MtGox Co. Ltd., No. 14-31229, Chapter 15, N.D. Texas Bkcy.).
WASHINGTON, D.C. - The U.S. Supreme Court on June 9 unanimously ruled that any potential error made by a bankruptcy court regarding its own judgment in a "core" proceeding under 28 U.S. Code Section 157(b) was "cured" by a district court's de novo review of the matter because the issue received the same review from the district court that it would have received had the bankruptcy court treated the claims as noncore proceedings (Executive Benefits Insurance Agency v. Arkinson, No. 12-1200, U.S. Sup.).
WASHINGTON, D.C. - Bank of America NA filed a petition for writ of certiorari with the U.S. Supreme Court that was made available on the docket June 5, in which it seeks high court review regarding whether the Bankruptcy Code permits a Chapter 7 debtor to "strip off" a junior mortgage lien in its entirety when the outstanding debt owed to a senior lienholder exceeds the current value of the collateral (Bank of America v. David B. Caulkett, No. 13-1421, Chapter 7, U.S. Sup.).