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Durabla Chapter 11 Case Continues; Dismissal Denied

WILMINGTON, Del. -- The Delaware bankruptcy judge overseeing Durabla Manufacturing Co.'s Chapter 11 case on Oct. 6 rejected a motion to dismiss the case made by a group of asbestos personal injury plaintiffs who maintain that the case was filed in bad faith and only to protect the company's president...

Bankruptcy Judge Approves Leslie Controls' Plan Of Reorganization

WILMINGTON, Del. - (Mealey's) The Delaware bankruptcy judge overseeing Leslie Control Inc.'s Chapter 11 case confirmed Leslie's plan of reorganization on Oct. 28 ( In Re: Leslie Controls Inc. , No. 10-12199-CSS, Del. Bkcy.). U.S. Bankruptcy Judge Christopher S. Sontchi of the District...

Supreme Court Denies Petition To Review Ruling In Asbestos Coverage Lawsuit

WASHINGTON, D.C.- (Mealey's) The U.S. Supreme Court on Nov. 30 denied an insurer's petition for certiorari seeking review of the Second Circuit U.S. Court of Appeals' ruling that a 1986 injunction issued in asbestos manufacturer Johns-Manville Corp.'s bankruptcy proceedings does not apply...

Supreme Court Denies Petition To Review Ruling In Asbestos Coverage Lawsuit

WASHINGTON, D.C.- (Mealey's) The U.S. Supreme Court on Nov. 30 denied an insurer's petition for certiorari seeking review of the Second Circuit U.S. Court of Appeals' ruling that a 1986 injunction issued in asbestos manufacturer Johns-Manville Corp.'s bankruptcy proceedings does not apply...

W.R. Grace, Insurers Reach $84 Million Settlement

WILMINGTON, Del. - (Mealey's) After a hearing Jan. 10, the bankruptcy judge overseeing W.R. Grace & Co.'s Chapter 11 case in a Delaware bankruptcy court approved an $84 million settlement between the company and a group of insurers to resolve asbestos-related liability coverage disputes ...

Bankruptcy Judge Recommends Approval Of W.R. Grace's Reorganization Plan

WILMINGTON, Del. - (Mealey's) A federal bankruptcy judge in Delaware on Jan. 31 resolved the last objections to W.R. Grace & Co.'s Chapter 11 joint plan of reorganization and recommended that the district court approve the plan ( In re: W.R. Grace & Co., et al. , No. 01-1139, D. Del....

Federal Judge Affirms Leslie Controls' Reorganization Plan

WILMINGTON, Del. - A Delaware federal judge on Feb. 7 affirmed an amended plan of reorganization in Leslie Controls Inc.'s Chapter 11 bankruptcy case ( In re: Leslie Controls, Inc. , No. 1:11-mc-00013, D. Del.). Judge Jerome B. Simandle issued an order in the U.S. District Court for the District...

General Motors' Asbestos Liability Set At $625 Million

NEW YORK -- A New York federal bankruptcy judge approved an agreement on Feb. 14 in General Motors Corp.'s Chapter 11 bankruptcy case that fixes the debtors' aggregate liability for asbestos personal injury claims at $625 million ( In re: Motors Liquidation Co., et al. , No. 09-50026, S.D. N...

Bankruptcy Judge Again Denies Confirmation Of Pittsburgh Corning's Reorganization Plan

PITTSBURGH - (Mealey's) Changes that Pittsburgh Corning Corp. (PCC) made to its Chapter 11 plan of reorganization following denial of plan confirmation in 2006 have not made the plan confirmable, though the plan's problems can still be fixed, a Pennsylvania federal bankruptcy judge held June...

9th Circuit: Insurers Have Standing To Object To Thorpe's Confirmed Reorganization Plan

SAN FRANCISCO - (Mealey's) Because Thorpe Insulation Co.'s Chapter 11 plan of reorganization could harm insurance companies, the plan is not "insurance neutral" and, therefore, the insurers have standing to object to it, the Ninth Circuit U.S. Court of Appeals held Jan. 24 in reversing...

Delaware Federal Judge Overrules Objections, Confirms W.R. Grace's Chapter 11 Plan

WILMINGTON, Del. - (Mealey's) A Delaware federal judge on Jan. 30 overruled all remaining objections to W.R. Grace & Co.'s Chapter 11 plan of reorganization and confirmed the plan, which includes establishment of a trust to pay asbestos personal injury claims having an estimated total value...

Asbestos Claims Against Quigley Parent Pfizer Allowed By 2nd Circuit

NEW YORK - (Mealey's) Personal injury suits seeking to hold Pfizer Inc. liable for asbestos-containing products manufactured by bankrupt subsidiary Quigley Co. Inc. under an "apparent manufacturer" theory of liability are not barred by an injunction issued in Quigley's Chapter 11 case...

Insurance Rights Can Be Assigned To Asbestos Trusts, 3rd Circuit Holds

PHILADELPHIA - (Mealey's) The U.S. Bankruptcy Code trumps anti-assignment provisions in insurance policies, the Third Circuit U.S. Court of Appeals held May 1 ( In re: Federal-Mogul Global Inc., et al. , Nos. 09-2230 and 09-2231, 3rd Cir.; 2012 U.S. App. LEXIS 8814). ( Opinion. Document #48-120529...

3rd Circuit Upholds Conversion Of Skinner Bankruptcy To Chapter 7

PHILADELPHIA - (Mealey's) A bankruptcy court has the authority to determine at the disclosure statement stage that a Chapter 11 reorganization plan is unconfirmable without first holding a confirmation hearing if it is obvious that the plan is patently unconfirmable, the Third Circuit U.S. Court...

Delaware Federal Judge Grants Debtor Access To Asbestos Claimant Information

WILMINGTON, Del. - (Mealey's) A Delaware federal judge on March 1 ruled that Chapter 11 debtor Garlock Sealing Technologies LLC can obtain documents filed by asbestos claimants' attorneys in nine other asbestos-related bankruptcy cases, finding that a bankruptcy judge erred and abused her discretion...

Bankruptcy Judge Sets Specialty Products' Asbestos Liability At $1.16 Billion

WILMINGTON, Del. -- (Mealey's) Former joint compound producer Bondex International Inc. and its related holding company Specialty Products Holding Corp. face an estimated $1.16 billion in pending and future asbestos personal injury claims, about double what the companies estimate their asbestos liabilities...

Pfizer Faces Asbestos Actions After Supreme Court Declines To Hear Case

WASHINGTON, D.C. - (Mealey's) The U.S. Supreme Court on June 24 denied a bid for certiorari by Pfizer Inc. of a ruling removing the protection for Pfizer of a bankruptcy injunction barring asbestos personal injury claims entered in the case of a defunct Pfizer subsidiary ( Pfizer Inc. v. Law Offices...

3rd Circuit Rejects Garlock’s Appeal Of Grace’s Plan For Lack Of Injury, Standing

PHILADELPHIA — (Mealey’s) Chapter 11 debtor Garlock Sealing Technologies Inc. does not have standing to object to fellow debtor W.R. Grace & Co.’s confirmed plan of reorganization because Garlock cannot show that it will be harmed by the plan, the Third Circuit U.S. Court of Appeals...

Duane Morris LLP: FACT Act Promises Transparency In Bankruptcy Trust Claims And Payments For Asbestos Exposure

Asbestos defendants are one step closer to greater transparency regarding the often illusive bankruptcy trust claims and payments. On Wednesday, November 13, 2013, the U.S. House of Representatives passed H.R. 982, the Furthering Asbestos Claim Transparency (FACT) Act by a 221-199 vote. FACT would amend...

Asbestos Bankruptcy Trusts: A 2013 Overview Of Trust Assets, Compensation & Governance

By Marc C. Scarcella and Peter R. Kelso [Editor's Note: Marc C. Scarcella and Peter R. Kelso, Managers at the Washington, DC office of Bates White Economic Consulting. The views of the authors do not reflect the opinions of their firm, their clients, or Mealey's Publications. © 2013 by...

Garlock Sues Law Firms, Alleging Fraud Over Asbestos Claims

CHARLOTTE, N.C. — (Mealey’s) Chapter 11 debtor Garlock Sealing Technologies LLC filed four adversary complaints Jan. 9 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...

2nd Circuit: Bankruptcy Court Order Final; Insurers’ Deals With Asbestos Claimants Valid

NEW YORK — (Mealey's) 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...

Supreme Court To Decide If Bankruptcy Lawyers Can Get Fees For Pursuing Bonus Fees

WASHINGTON, D.C. — (Mealey’s) The U.S. Supreme Court on Oct. 2 agreed to decide whether the U.S. Bankruptcy Code gives bankruptcy courts discretion to award lawyers their fees for successfully defending applications for enhanced attorney fees ( Baker Botts, LLP, et al. v. ASARCO, LLC , No...

Payment Of Attorneys For Defending Fee Requests Debated In Supreme Court

WASHINGTON, D.C. — (Mealey’s) There is no basis in the law for categorically denying payment to lawyers for successfully defending their fee applications in bankruptcy cases, attorney Aaron M. Streett of Texas law firm Baker Botts LLP told the U.S. Supreme Court Feb. 25 in a case in which...

Supreme Court: Bankruptcy Lawyers Not Entitled To Fees For Defending Fee Requests

WASHINGTON, D.C. — (Mealey’s) 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...