LexisNexis® Legal Newsroom
    Mealey's Bankruptcy - Judge Dismisses Appeal Of Future Claimants Of Energy Future's Failed Plan

    WILMINGTON, Del. - A Delaware federal judge on Sept. 26 dismissed an appeal by potential asbestos claimants of the plan of reorganization for Chapter 11 debtor Energy Future Holdings Corp. (EFH) after finding that the plan is null and void because it was never consummated (Shirley Fenicle, et al. v. Energy Future Holdings Corp., et al., No. 15-1183, D. Del.; 2016 U.S. Dist. LEXIS 131217).

    Mealey's Bankruptcy - Specialty Products, Bondex Get More Time To Resolve Tax Claims

    WILMINGTON, Del. - A Delaware federal bankruptcy judge on Sept. 16 gave reorganized Chapter 11 debtors Specialty Products Holding Corp. and affiliate Bondex International Inc. three more months to object to non-asbestos claims so the debtors can continue negotiating resolutions for several tax claims (In re: Specialty Products Holding Corp., et al., No. 10-11780, D. Del. Bkcy.).

    Mealey's Bankruptcy - Eagle Files Plan While Insurer Seeks Dismissal Of Case For Bad Faith

    NEW ORLEANS - Former gasket and insulation distributor Eagle Inc. filed a Chapter 11 plan of reorganization and disclosure statement Sept. 13 in Louisiana federal bankruptcy court, a day after one of its insurers sought to have the debtor's case dismissed, saying the bankruptcy petition was filed in bad faith and Eagle has no reasonable chance of being rehabilitated (In re: Eagle, Inc., No. 15-12437, E.D. La. Bkcy.).

    Mealey's Bankruptcy - Asbestos Claimants Appeal Energy Future's Plan Confirmation

    WILMINGTON, Del. - Three asbestos personal injury claimants on Sept. 12 appealed a Delaware federal bankruptcy court's recent confirmation of the first of two plans of reorganization for Chapter 11 debtor Energy Future Holdings Corp. (EFH) to federal court (In re: Energy Future Holdings Corp., et al., No. 14-10979, D. Del. Bkcy.).

    Mealey's Bankruptcy - G-I Holdings Wins Summary Judgment On Claims By New York Housing Authority

    NEWARK, N.J. - The New York City Housing Authority (NYCHA) cannot pursue asbestos property damage claims against former Chapter 11 debtor G-I Holdings Inc. because the authority's allegations fail to meet the required elements for indemnity or restitution, a New Jersey federal bankruptcy judge held Sept. 9 in awarding G-I summary judgment (In re: G-I Holdings, Inc., et al., Nos. 01-30135 and 01-38790, D. N.J. Bkcy.; 2016 Bankr. LEXIS 3314).

    Mealey's Bankruptcy - 3rd Circuit Panel Will Not Rehear Appeal Of Pollution Claims Against Flintkote

    PHILADELPHIA - A two-judge panel of the Third Circuit U.S. Court of Appeals on Sept. 8 declined to reconsider its decision rejecting an appeal by a corporate property owner seeking to hold Chapter 11 debtor The Flintkote Co. liable for pollution at an old New Jersey manufacturing site (8 E. Frederick Place LLC v. The Flintkote Co., et al., No. 15-2886, 3rd Cir.).

    Mealey's Bankruptcy - Bankruptcy Judge Splits $20 Million Fee Award Evenly Among 4 Law Firms

    NEW YORK - A $20 million attorney fee fund from a settlement between an insurer and asbestos claimants should be divided equally among four law firms that negotiated the settlement based on the language and meaning of the agreement, a New York federal bankruptcy judge held Aug. 26 (In re: Johns-Manville Corporation, et al. [Eric Bogdan and the Bogdan Law Firm v. Bevan & Associates, LPA, Inc., et al., No. 15-01023] No. 82-11656, S.D. N.Y. Bkcy.; 2016 Bankr. LEXIS 3145).

    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 judge about appointing her to referee the dispute, according to an Aug. 23 docket entry (In re: W.R. Grace & Co., et al., No. 01-01139, D. Del. Bkcy.).

    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 the debtors' asbestos trust (In re: Specialty Products Holding Corp., et al., No. 10-11780, D. Del. Bkcy.).

    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, saying the Third Circuit should "reaffirm its commitment to carefully balance bankruptcy's goal of a clean start with environmental law's goal of protecting public health" (In re: G-I Holdings Inc., f/k/a GAF Corporation, et al. [New York City Housing Authority v. G-I Holdings, Inc.], No. 15-2164, 3rd Cir.; 2016 U.S. App. LEXIS 13108).

    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: Eagle, Inc., No. 15-12437, E.D. La. Bkcy.).

    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, 2nd Cir.; 2016 U.S. App. LEXIS 12848).

    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' asbestos trust (In re: Specialty Products Holding Corp., et al., No. 10-11780, D. Del. Bkcy.).

    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 in the tort system by asbestos plaintiffs and their attorneys (In re: W.R. Grace & Co., et al., No. 01-01139, D. Del. Bkcy.; In re: The Flintkote Co., No. 04-11300, D. Del. Bkcy.).

    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, and her only recourse is to file a claim with the asbestos trust established in the case (In re Johns-Manville Corporation, et al., No. 82-11656, S.D. N.Y. Bkcy.).

    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 June 20 in Illinois federal bankruptcy court (In re: The Budd Company, Inc., No. 14-11873, N.D. Ill. Bkcy.).

    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 date, so enjoining the claim would violate due process, the representative for future property damage claimants argues in a June 20 brief in Delaware federal bankruptcy court (In re: W.R. Grace & Co., et al., No. 01-01139, D. Del. Bkcy.).

    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 (In re: Pittsburgh Corning Corporation, No. 00-22876, W.D. Pa. Bkcy.).

    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-Manville Corporation, et al., No. 82-11656, S.D. N.Y. Bkcy.).

    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 bankruptcy judge ruled June 7 (Rapid-American Corporation, et al. v. Travelers Casualty and Surety Company, et al., No. 15-01095, S.D. N.Y. Bkcy.).

    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 Inc. v. Shein Law Center Ltd, et al., No. 16-5913, John Crane Inc. v. Simon Greenstone Panatier Bartlett, et al., No. 16-5918, N.D. Ill.).

    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 due to the plan becoming null and void (Michael Cunningham, et al. v. Energy Future Holdings Corp., et al., No. 15-1218, D. Del.; Shirley Fenicle, et al. v. Energy Future Holdings Corp., et al., No. 15-1183, D. Del.).

    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., No. 10-31607, W.D. N.C. Bkcy.).

    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 committee of unsecured creditors say in a May 16 objection in Delaware federal bankruptcy court (In re: Energy Future Holdings Corp., No. 14-10979, D. Del. Bkcy.).

    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 another insurer's motion to compel discovery related to the debtor's corporate ownership (In re: Eagle, Inc., No. 15-12437, E.D. La. Bkcy.).