3rd Circuit Rejects 3 More Appeals Of W.R. Grace's Reorganization Plan

PHILADELPHIA - The Third Circuit U.S. Court of Appeals on Sept. 4 in two opinions rejected challenges by Canada, Montana and a South Carolina hospital to Chapter 11 bankruptcy debtor W.R. Grace & Co.'s confirmed plan of reorganization, finding that the plan is equitable in its treatment of Canada...

Health Plans Seek Reimbursement From Pfizer For Asbestos Medical Care

NEW YORK - Thirty-two insurers and health care plans on Sept. 5 sought relief in New York federal bankruptcy court from an injunction in the Chapter 11 case of Quigley Co. Inc. so they can sue Quigley parent Pfizer Inc. for reimbursement of millions of dollars in benefits for asbestos victims, saying...

Judge Dismisses As Moot Insurers' Appeal Of Settlement In Plant Bankruptcy

SAN FRANCISCO - An appeal by nonsettling insurance companies of a $70 million settlement between Chapter 11 debtor Plant Insulation Co. and two other insurers is moot because the settlement is authorized by the U.S. Bankruptcy Code and was consummated in good faith and the nonsettling insurers never...

Skinner's Case Closed; Asbestos Claims Can Proceed Against Insurers

PITTSBURGH - A Pennsylvania federal bankruptcy judge on Sept. 11 dismissed the 12-year-old converted Chapter 7 case of Skinner Engine Co. Inc., allowing asbestos personal injury claims to proceed against the company's lone remaining asset - insurance policies - in the tort system (In re: Skinner...

Judgment Entered Against Garlock After W.R. Grace Appeal Rehearing Denied

PHILADELPHIA - The Third Circuit U.S. Court of Appeals on Sept. 13 entered final judgment against Chapter 11 debtor Garlock Sealing Technologies LLC in Garlock's appeal of confirmation of fellow debtor W.R. Grace & Co.'s plan of reorganization after denying Garlock's request for rehearing...

Lawyers Lose Summary Judgment Bid On Garlock's Fraud, Conspiracy Claims

CHARLOTTE, N.C. - A North Carolina federal bankruptcy judge on Sept. 17 for a second time denied summary judgment to an attorney and law firm accused by Chapter 11 debtor Garlock Sealing Technologies LLC of fraudulently obtaining a settlement from Garlock for a mesothelioma victim (Garlock Sealing Technologies...

Federal Judge Compels Arbitration In Disputes Over Asbestos Insurance Coverage

WILMINGTON, Del. - Two insurance companies involved in long-running disputes with Chapter 11 debtor The Flintkote Co. over coverage for asbestos claims are bound by an "expansive" 28-year-old agreement to participate in arbitration to resolve the disputes, a Delaware federal judge held Sept...

Judge Again Finds Dow Breast Implant Settlement Includes Tissue Expanders

DETROIT - On remand from a federal appeals court, the judge overseeing the Dow Corning silicone breast implant settlement on Oct. 8 affirmed her four-year-old ruling that breast tissue expanders are covered by the settlement (In Re: Settlement Facility Dow Corning Trust, No. 00-00005, E.D. Mich., S....

Savient Pharmaceuticals Files For Chapter 11 Bankruptcy, Gets Cash Management OK

WILMINGTON, Del. - The federal bankruptcy judge in Delaware presiding over the Chapter 11 case of Savient Pharmaceuticals Inc. on Oct. 17 gave the company approval to use a cash management system in conducting its bankruptcy proceeding (In Re: Savient Pharmaceuticals Inc., No. 13-12680, Chapter 11, D...

Bankruptcy Judge Denies Most Of Quigley Trustee's Bid To Reduce Lawyers' Pay

NEW YORK - A New York federal bankruptcy judge on Oct. 25 overruled most objections of the U.S. trustee to final attorney fee requests in the Chapter 11 case of Quigley Co. Inc., disallowing only $20,600 of the more than $7.6 million in fees that the trustee had sought to have denied to three law firms...

9th Circuit Vacates Asbestos Bankruptcy Reorganization; Says Trust Isn't In Control

SAN FRANCISCO - The Ninth Circuit U.S. Court of Appeals on Oct. 28 vacated the bankruptcy reorganization plan for a former asbestos insulator, finding that the plan failed to satisfy the requirements of Section 524(g) of the Bankruptcy Code dealing with control by asbestos trusts (In Re: Plant Insulation...

Bankruptcy Judge Denies Reconsideration Of Pittsburgh Corning Plan Confirmation

PITTSBURGH - A Pennsylvania federal bankruptcy judge on Nov. 12 mostly denied a motion by two insurance companies to reconsider confirmation of Pittsburgh Corning Corp.'s Chapter 11 plan of reorganization, granting the request only to make clear what affiliates of the debtor are protected from asbestos...

Bankrupt Rotech Healthcare: Counsel For Equity Committee Not Entitled To Any Fees

WILMINGTON, Del. - The reorganized version of bankrupt Rotech Healthcare Inc. on Nov. 12 filed a brief objecting to the $851,105.20 fee application of the law firm that represented the Official Committee of Equity Security Interest Holders, arguing that the firm did not provide value to the bankruptcy...

Yarway Gets Additional Time To File Chapter 11 Reorganization Plan

WILMINGTON, Del. - With new Chapter 11 debtor Yarway Corp. saying that it needs more time to continue working with asbestos claimants to develop a consensual plan of reorganization for the company, a Delaware federal bankruptcy judge on Nov. 14 gave the debtor four more months to file the plan and solicit...

Flintkote's Rights Extended While Confirmed Plan Of Reorganization Is Under Appeal

WILMINGTON, Del. - Chapter 11 debtor The Flintkote Co. has the exclusive right to file a plan of reorganization for five more months if it needs to pending the outcome of an appeal of the debtor's already-confirmed plan, according to an order filed Nov. 15 by a Delaware federal bankruptcy judge ...

California Federal Judge Dismisses Insurer's Coverage Action Against Flintkote

SAN FRANCISCO - A California federal judge on Nov. 21 dismissed an insurer's declaratory judgment action filed against Chapter 11 debtor The Flintkote Co. to determine insurance coverage rights and obligations because the same issues were recently decided in Delaware federal court (Aviva PLC v. The...

Committee: Savient Seeking 'Inappropriate Concessions' With Its Cash Collateral

WILMINGTON, Del. - The Official Committee of Unsecured Creditors in the Chapter 11 bankruptcy case of Savient Pharmaceuticals Inc. on Nov. 25 filed a brief in the U.S. Bankruptcy Court for the District of Delaware objecting to Savient's motion seeking approval to use cash collateral (In re: Savient...

Law Firm: Bankrupt Rotech Healthcare Not Allowed To Depose Its Attorneys

WILMINGTON, Del. - The law firm that represented the Official Committee of Equity Security Interest Holders in the Chapter 11 bankruptcy of Rotech Healthcare Inc. on Dec. 13 moved for a protective order, contending that Rotech should not be permitted to depose members of the firm (In Re: Rotech Healthcare...

W.R. Grace Gets Approval For $250 Million Payment To Qualified Settlement Fund

WILMINGTON, Del. - As part of its preparations to emerge from Chapter 11 protection in 2014 and to receive a tax break for 2013, W.R. Grace & Co. received authorization Dec. 17 from a Delaware federal bankruptcy judge to contribute up to $250 million to a qualified settlement fund for eventual distribution...

Savient Pharmaceuticals Seeks Bankruptcy Court OK For Deal Allowing $2.06M Claim

WILMINGTON, Del. - Bankrupt Savient Pharmaceuticals Inc. on Dec. 18 moved in the U.S. Bankruptcy Court for the District of Delaware for approval of a global settlement agreement that would allow its landlord to assert a claim against the bankruptcy estate for $2,062,000 in exchange for an agreement to...

Md. Federal Judge Interprets Insurance Coverage In Favor Of Asbestos Defendant

BALTIMORE - While two insurance companies are correct that Maryland follows the horizontal exhaustion rule for determining primary and excess policy coverage, the rule must be applied based on the theory of pro-rata allocation, as a former insulation company seeking coverage for asbestos personal injury...

Garlock Sues Law Firms, Alleging Fraud Over Asbestos Claims

CHARLOTTE, N.C. - Chapter 11 debtor Garlock Sealing Technologies LLC on Jan. 9 filed four adversary complaints in a North Carolina federal bankruptcy court against several law firms and attorneys, alleging conspiracy, fraud and violations of the Racketeer Influenced and Corrupt Organizations Act (RICO...

Bankruptcy Judge: Plaintiffs, Lawyers Covered Up Evidence In Garlock Meso Cases

CHARLOTTE, N.C. - Chapter 11 debtor Garlock Sealing Technologies LLC's total estimated liability for present and future mesothelioma claims is only $125 million, not $1.2 billion as asbestos personal injury claimants argued, because Garlock's history of settling mesothelioma claims "was...

Bankruptcy Judge In Landmark Johns-Manville, Madoff Cases Dies

NEW YORK - Longtime U.S. Bankruptcy Judge Burton R. Lifland of the Southern District of New York, who presided over several landmark cases, including Johns-Manville Corp.'s asbestos bankruptcy and the liquidation of the Bernard L. Madoff Investment Securities LLC estate following Madoff's Ponzi...

Bankruptcy Judge OKs W.R. Grace's $1.1B Settlement Of Final Reorganization Appeal

WILMINGTON, Del. - A Delaware federal bankruptcy judge on Jan. 17 approved a settlement agreement under which Chapter 11 debtor W.R. Grace & Co. will pay $1.1 billion to dozens of financial institutions and investment funds that are the only remaining objectors to Grace's plan of reorganization...