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Mealey's Bankruptcy - California Federal Judge: Insurers Must Pay Flintkote Trust For Asbestos Claims

SAN FRANCISCO - A California federal judge on April 4 awarded insurers partial summary judgment in a coverage dispute with Chapter 11 debtor The Flintkote Co., finding that the insurers are obligated under the policies at issue to pay Flintkote only for the amount Flintkote actually pays to asbestos...

Mealey's Bankruptcy - Hospital Seeks Class Certification For W.R. Grace Property Damage Claims

WILMINGTON, Del. - Neither the confirmation order for W.R. Grace & Co.'s reorganization plan nor a proposed case management order precludes a Delaware federal bankruptcy court from certifying a class of building owners that hold property damage claims against the debtor, a South Carolina hospital...

Mealey's Bankruptcy - W.R. Grace Says Claim Over Damaged Timberland Filed 7 Years Too Late

WILMINGTON, Del. - A timber company's claim that its land was contaminated with asbestos from W.R. Grace & Co.'s mining operations near Libby, Mont., is discharged and enjoined by W.R. Grace's confirmed Chapter 11 reorganization plan because the claim was filed too late, even though the...

Mealey's Bankruptcy - Pittsburgh Corning's Plan Takes Effect; Trust Funding Expected Soon

PITTSBURGH - The reorganization plan of debtor Pittsburgh Corning Corp. (PCC), which includes a $3 billion trust to pay asbestos personal injury claims, became effective April 27, more than 16 years after the company filed for Chapter 11 protection in Pennsylvania federal bankruptcy court (In re: Pittsburgh...

Mealey's Bankruptcy - Bankruptcy Judge Nixes Energy Future's Request To Expedite Confirmation Plan

WILMINGTON, Del. - A Delaware federal bankruptcy judge on May 2 denied a request by Chapter 11 debtor Energy Future Holdings Corp. (EFH) to expedite consideration of dates and deadlines for confirmation of the company's revised plan of reorganization, which EFH was forced to file after its previously...

Mealey's Bankruptcy - Budd Statement OK'd; Asbestos Committee Says Plan Should Be Approved

CHICAGO - An Illinois federal bankruptcy judge on May 6 approved the disclosure statement for the reorganization plan of Chapter 11 debtor The Budd Co. Inc., finding that the debtor has provided sufficient information in the statement to allow holders of claims, including asbestos personal injury claims...

Mealey's Bankruptcy - California Federal Judge: Insurers Must Post $1.5M Bond In Asbestos Suit

SAN FRANCISCO - A California federal judge on May 9 determined that insurers must post a bond of $1.5 million, plus prejudgment interest, in a coverage dispute with Chapter 11 debtor The Flintkote Co. (The Flintkote Company v. Aviva PLC, No. 15-cv-01638, N.D. Calif.; 2016 U.S. Dist. LEXIS 61366).

Mealey's Bankruptcy - 2nd Eagle Insurer Seeks Discovery On Debtor's Corporate Ownership

NEW ORLEANS - An insurance company on May 12 asked a Louisiana federal bankruptcy judge to order Chapter 11 debtor Eagle Inc. to share discovery documents produced in the case to other insurers and asbestos claimants; the request followed an order by the bankruptcy judge a week earlier granting in part...

Mealey's Bankruptcy - Asbestos Claimants Oppose Expedited Confirmation For Energy Future's Plan

WILMINGTON, Del. - Proposed expedited protocols for confirmation of the plan of reorganization for Chapter 11 debtor Energy Future Holdings Corp. (EFH) should be rejected because they violate the due process rights of asbestos personal injury claimants, the two asbestos claimants on the debtor's...

Mealey's Bankruptcy - Garlock Files New Plan; Disclosure Statement Hearing Scheduled

CHARLOTTE, N.C. - A North Carolina federal bankruptcy judge on May 23 said he will hold a hearing June 22 to consider approving the recently filed disclosure statement for the revamped plan of reorganization of Garlock Sealing Technologies LLC (GST) (In re: Garlock Sealing Technologies, LLC, et al.,...

Mealey's Bankruptcy - Future Claimants Say Appeal Not Mooted By Energy Future's Failed Plan

WILMINGTON, Del. - Two potential asbestos claimants in the Chapter 11 case of Energy Future Holdings Corp. (EFH) agreed May 23 to stay the briefing in their appeal of the debtor's plan of reorganization pending a decision in Delaware federal court on EFH's request to dismiss the appeal as moot...

Mealey's Bankruptcy - John Crane Inc. Files RICO Actions Against Asbestos Plaintiff Firms

CHICAGO - Two plaintiff side asbestos firms fabricated false exposure histories in a scheme to defraud and obstruct justice, John Crane Inc. (JCI) alleges in a pair of Illinois federal complaints filed June 6 alleging violation of the Racketeering Influenced and Corrupt Organizations Act (John Crane...

Mealey's Bankruptcy - Rapid-American Insurers Win Summary Judgment Battle Over Limit Exhaustion

NEW YORK - Underlying insurance limits must be exhausted by actual payment before excess liability coverage attaches for three of four policies in dispute between Chapter 11 debtor Rapid-American Corp. and the three insurers that have not settled their coverage disputes with the company, a New York federal...

Mealey's Bankruptcy - Johns-Manville Fund Closed After Paying $76M To Asbestos Claimants

POUGHKEEPSIE, N.Y. - A fund established in the Chapter 11 case of Johns-Manville Corp. paid more than $76 million to 17,111 asbestos personal injury claimants before the fund was terminated in May, according to the fund's final report, filed June 10 in New York federal bankruptcy court (In re Johns...

Mealey's Bankruptcy - Bankruptcy Judge: Insurers Can Seek Contribution From Pittsburgh Corning Parent

PITTSBURGH - A Pennsylvania federal bankruptcy judge approved a stipulation June 14 allowing insurers to proceed with their claim against the parent company of Chapter 11 debtor Pittsburgh Corning Corp. (PCC) for contribution or indemnification in a Louisiana state court asbestos premises liability action...

Mealey's Bankruptcy - Claimant Representative, Company Back Damaged Timber Claim Against W.R. Grace

WILMINGTON, Del. - A timber company's claim that its land was contaminated with asbestos from W.R. Grace & Co.'s mining operations near Libby, Mont., is not foreclosed by a claims bar date in W.R. Grace's Chapter 11 case because the company did not know about the damage before the bar...

Mealey's Bankruptcy - Asbestos Personal Injury Claimants Reject Budd's Plan Of Reorganization

CHICAGO - Asbestos claimants were the only class to reject the proposed Chapter 11 plan of reorganization for debtor The Budd Co. Inc., voting 958-696 against the plan, despite a recommendation to approve the plan by the official asbestos claimants' committee, according to a balloting report filed...

Mealey's Bankruptcy - Bankruptcy Judge Bars State Court Suit Against Johns-Manville Affiliate

NEW YORK - A New York federal bankruptcy judge on June 30 enjoined a woman's Louisiana state court asbestos personal injury lawsuit against a subsidiary of Johns-Manville Corp. after finding that the woman's claims are barred by decades-old injunctions in Johns-Manville's Chapter 11 case...

Mealey's Bankruptcy - Ford, Honeywell Seek To Mine Asbestos Claimant Data For Evidence Of Fraud

WILMINGTON, Del. - Ford Motor Co. on July 6 joined in two motions filed in Delaware federal bankruptcy court by Honeywell International Inc. seeking access to asbestos claimants' data in the Chapter 11 cases of W.R. Grace & Co. and The Flintkote Co. to review the information for evidence of fraud...

Mealey's Bankruptcy - Specialty Products, Bondex Object To Asbestos Claims Against Reorganized Debtors

WILMINGTON, Del. - Reorganized Chapter 11 debtors Specialty Products Holding Corp. and affiliate Bondex International Inc. filed their first omnibus objection to asbestos personal injury claims July 6 in Delaware federal bankruptcy court, saying the claims are now the responsibility of the debtors'...

Mealey's Bankruptcy - 2nd Circuit Panel Revives Ignition Switch Claims Against General Motors

NEW YORK - People who were allegedly injured as a result of defective General Motors ignition switches in automobiles made before its 2009 bankruptcy can now sue the company, a Second Circuit U.S. Court of Appeals panel ruled July 13 (In Re: Motors Liquidation Company, Nos. 15-2844, 15-2847 and 15-2848...

Mealey's Bankruptcy - Asbestos Claimants' Law Firm Approved In Eagle Case, But At Reduced Rates

NEW ORLEANS - A Louisiana federal bankruptcy judge on Aug. 1 allowed the asbestos claimants' committee in the Chapter 11 case of Eagle Inc. to replace its counsel with an out-of-state law firm but capped the firm's hourly fee amount after an Eagle insurer protested the requested change (In re...

Mealey's Bankruptcy - New York Housing Agency Seeks Rehearing On Claims Against G-I Holdings

NEW YORK - The New York City Housing Authority (NYCHA) on Aug. 1 asked a Third Circuit U.S. Court of Appeals panel to rehear its recent decision rejecting the authority's bid to force former Chapter 11 debtor G-I Holdings Inc. to remove asbestos-containing building materials from apartment buildings...

Mealey's Bankruptcy - Bankruptcy Judge Disallows Asbestos Claims Against Specialty Products, Bondex

WILMINGTON, Del. - A Delaware federal bankruptcy judge on Aug. 18 disallowed 13 asbestos personal injury claims against reorganized Chapter 11 debtors Specialty Products Holding Corp. and affiliate Bondex International Inc., ruling that the claims are barred by an injunction channeling the claims to...

Mealey's Bankruptcy - Hearing Set On Honeywell's Bid For Asbestos Claimant Data In 9 Bankruptcies

WILMINGTON, Del. - A Delaware federal bankruptcy judge will hold a hearing in October on a request by Honeywell International Inc. for access to asbestos claimants' data in nine Chapter 11 cases, including W.R. Grace & Co.'s bankruptcy proceedings, and in the meantime will contact a retired...