LexisNexis® Legal Newsroom
    Mealey's Bankruptcy - GM Opposes Stay Relief For California District Attorney's State Court Suit

    NEW YORK - Orange County, Calif., District Attorney Tony Rackauckas should not be granted relief from a stay in the General Motors Corp. (Old GM) bankruptcy proceedings in order to seek remand of his suit against the automaker to California state court, General Motors LLC (New GM) argues in an Aug. 29 brief to the U.S. Bankruptcy Court for the Southern District of New York (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.).

    Mealey's Bankruptcy - Republic Powdered Metals Joins Affiliate Specialty Products In Bankruptcy

    WILMINGTON, Del. - Roof coatings and restoration company Republic Powdered Metals Inc., an affiliate of Chapter 11 debtor Specialty Products Holding Corp., on Aug. 31 filed its own voluntary Chapter 11 petition in Delaware federal bankruptcy court, seeking to reorganize and resolve asbestos personal injury claims under a nearly $800 million agreement between Specialty Products' parent company and asbestos claimants (In re Republic Powdered Metals, Inc., No. 14-12028, D. Del. Bkcy.).

    Mealey's Bankruptcy - Bankruptcy Judge Finds Claims Against Tyvek Installer Are Timely

    RALEIGH, N.C. - A federal bankruptcy court judge in North Carolina on Aug. 25 found that the general contractor overseeing construction of a luxury condominium complex could pursue claims for negligence, breach of express warranty and indemnity against the subcontractor that installed Tyvek building wrap, ruling that any alleged defects in the installation of the product were not open and obvious (In re: New Bern Riverfront Development LLC, No. 09-10340-8-SWH, Adversary Proceeding No. 10-00023-AP, E.D. N.C. Bkcy.; 2014 Bankr. LEXIS 3564).

    Mealey's Bankruptcy - GM Ignition-Switch Plaintiffs Seek Relief From Stay In Bankruptcy Court

    NEW YORK - The plaintiffs in a class action alleging that General Motors LLC (New GM) concealed ignition-switch defects in its vehicles on Aug. 22 asked U.S. Bankruptcy Judge Robert E. Gerber of the Southern District of New York, who is overseeing General Motors Corp.'s (Old GM) Chapter 11 proceedings, for limited relief from the automatic stay to pursue their claims (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.).

    Mealey's Bankruptcy - California DA Seeks Relief From Stay In GM Bankruptcy To Oppose Suit's Removal

    NEW YORK - Orange County, Calif., District Attorney Tony Rackauckas asked the U.S. Bankruptcy Court for the Southern District of New York on Aug. 19 for limited relief from the automatic stay in the General Motors Corp. bankruptcy proceedings to allow him to seek remand of his California suit against the automaker to state court (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.).

    Mealey's Bankruptcy - 156 Plaintiffs May File Complaint Over Injuries Predating GM Sale, MDL Judge Rules

    NEW YORK - A group of 156 plaintiffs may file an omnibus complaint in the U.S. District Court for the Southern District of New York against General Motions LLC for deaths and injuries that occurred prior to the sale of General Motors Corp., the judge overseeing the GM ignition-switch multidistrict litigation ruled Aug. 19 (In re General Motors LLC Ignition Switch Litigation, No. 14-MD-2543 [JMF]; Pamela Edwards, et al. v. General Motors LLC, S.D. N.Y.).

    Mealey's Bankruptcy - Judge Rejects Insurers' Challenge To Approval Of Plant's Revised Plan

    SAN FRANCISCO - A bankruptcy court correctly held that changes made by Plant Insulation Co. to its Chapter 11 plan of reorganization on remand from the Ninth Circuit U.S. Court of Appeals are sufficient to satisfy a U.S. Bankruptcy Code requirement that the asbestos trust established by the plan has the ability to take control over the reorganized debtor's future operations, a California federal judge ruled Aug. 18 in denying an appeal by insurers and affirming the plan confirmation (OneBeacon Insurance Company, et al. v. Plant Insulation Company, et al., No. 14-1200, N.D. Calif.).

    Mealey's Bankruptcy - United Gilsonite Proposes Consensual Plan To Reorganize, Pay Asbestos Claims

    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.).

    Mealey's Bankruptcy - Aetna Granted Access To Asbestos Claimant Information In Specialty Products Case

    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.).

    Mealey's Bankruptcy - Liquidator Of Insolvent Insurer Has Asked To Close Liquidation Proceeding

    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.).

    Mealey's Bankruptcy - Parties Brief Judge On Asbestos Verdict Against Trust Subsidiary

    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.).

    Mealey's Bankruptcy - Judge Terminates Liquidation Of Cadillac Insurance Company

    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.).

    Mealey's Bankruptcy - Judge Declines To Reopen Receiver's Case Against Insolvent Insurer's Auditors

    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.).

    Mealey's Bankruptcy - Justice: Insolvent Insurer's Liquidator Wishes To Close Liquidation Proceedings

    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.).

    Mealey's Bankruptcy - New GM Invokes Sale Order As Shield Against Liability For Old GM's Conduct

    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.).

    Mealey's Bankruptcy - Excess Insurers To Pay $5.9 Million To Asbestos Trust In Plant Insulation Deals

    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.).

    Mealey's Bankruptcy - Garlock Bankruptcy Judge Sets Protocol For Release Of Confidentiality Information

    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.).

    Mealey's Bankruptcy - Class Action Against 'New GM' Subject To Stay, Bankruptcy Judge Rules

    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.).

    Mealey's Bankruptcy - RPM Announces $797 Million Deal For Reorganization Of Specialty Products, Bondex

    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.

    Mealey's Bankruptcy - Federal Judge Reverses Confidentiality Rulings In Garlock's Bankruptcy Case

    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.).

    Mealey's Bankruptcy - 2nd Circuit: Bankruptcy Court Order Final; Insurers' Deals With Claimants Valid

    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.).

    Mealey's Bankruptcy - OSG's Plan Confirmed; Allowed Asbestos Injury Claims To Be Reinstated

    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.).

    Mealey's Bankruptcy - Insurers Continue Pursuit To Audit THAN Trust For Evidence Of Fraud

    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.).

    Mealey's Bankruptcy - Insurer Proposes Settlement In W.Va. Bankruptcy Court For Elk River Spill Claims

    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.).

    Mealey's Bankruptcy - 12 Foundations: Syncora's Subpoenas Regarding Detroit Debt Plan Should Be Quashed

    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.).