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    Mealey's Bankruptcy - Plaintiffs Ask Bankruptcy Court To Deny Enforcement Of Stay Of Suits Against GM

    NEW YORK - The plaintiffs in the ignition-switch litigation against General Motors LLC (New GM), a group of non-ignition switch plaintiffs and the states of Arizona and California on Aug. 5 filed an objection to the automaker's motion to enforce a stay against dozens of suits against it (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 - Amended Order Clears Way For Garlock Discovery Of Manville Trust Claim Data

    CHARLOTTE, N.C. - A North Carolina federal bankruptcy judge on Aug. 5 amended his order allowing Chapter 11 debtor Garlock Sealing Technologies LLC to serve a subpoena on the Manville Personal Injury Settlement Trust for information on the more than 90,000 asbestos claimants in Garlock's bankruptcy case so the parties can conduct a preliminary exchange of information to limit the number of false positive matches of claimants in their databases (In re: Garlock Sealing Technologies, LLC, No. 10-31607, W.D. N.C. Bkcy.).

    Mealey's Bankruptcy - New Jersey Property Owner Asks 3rd Circuit To Decide Claims Against Flintkote

    WILMINGTON, Del. - A corporate property owner is taking its pursuit of state and federal environmental liability claims against Chapter 11 debtor The Flintkote Co. to the Third Circuit U.S. Court of Appeals, according to a notice of appeal the property owner filed Aug. 5 in Delaware federal court (8 E. Frederick Place LLC v. The Flintkote Co., et al., No. 12-1176, D. Del.).

    Mealey's Bankruptcy - Bankruptcy Judge: Claims Against Insurer Barred By Johns-Manville Injunction

    NEW YORK - An asbestosis victim's claims that an insurance company conspired with Johns-Manville Corp. to withhold information from the public on the dangers of asbestos inhalation are barred by nearly 30-year-old court orders confirming Johns-Manville's bankruptcy reorganization plan and issuing an injunction protecting the company and its insurers from such claims, a New York federal bankruptcy judge held July 27 (In re Johns Manville Corporation, et al., No. 82-11656, S.D. N.Y. Bkcy.; 2015 Bankr. LEXIS 2455).

    Mealey's Bankruptcy - Energy Future Holdings Proposes 2 Options For Reorganizing

    WILMINGTON, Del. - Chapter 11 debtor Energy Future Holdings Corp. (EFH) on July 23 filed an amended plan of reorganization that includes two options for emerging from bankruptcy, with the company favoring a plan that includes $12.1 billion of new debt and equity arranged by an ad hoc group and the conversion of EFH into a real estate investment trust (In re: Energy Future Holdings Corp., No. 14-10979, D. Del. Bkcy.).

    Mealey's Bankruptcy - GM Bankruptcy Judge Denies Motions For Relief From Ruling Barring Suits

    NEW YORK - The judge overseeing the General Motors Corp. (Old GM) bankruptcy proceedings on July 22 rejected a challenge to his ruling enforcing a sale order and injunction barring hundreds suits against General Motors LLC (New GM) alleging personal injury and economic loss as a result of ignition-switch defects in vehicles 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 - Children Of Meso Victim Seek Legal Representative For Unmanifested EFH Claimants

    WILMINGTON, Del. - The son and daughter of a man who died from mesothelioma after being exposed to asbestos at a plant operated by an affiliate of Chapter 11 debtor Energy Future Holdings Corp. (EFH) say a legal representative should be appointed in EFH's bankruptcy case to protect the interests of themselves and thousands of others like them who may one day have asbestos personal injury claims against the debtor, according to a motion filed July 22 in Delaware federal bankruptcy court (In re: Energy Future Holdings Corp., No. 14-10979, D. Del. Bkcy.).

    Mealey's Bankruptcy - Pennsylvania High Court Affirms Denial Of Petition To Liquidate Insurers

    HARRISBURG, Pa. - The Pennsylvania Supreme Court on July 20 affirmed a lower court decision that the rehabilitation of two insolvent insurers should not be converted to a liquidation process (In re: Penn Treaty Network America Insurance Company in Rehabilitation, No. 94 MAP 2012, Pa. Sup., Middle Dist.; In re: American Network Insurance Company In Rehabilitation, No. 95 MAP 2012, Pa. Sup., Middle Dist.).

    Mealey's Bankruptcy - Insurer: Asbestos Claimants' Negligence Claims Barred By W.R. Grace Injunction

    WILMINGTON, Del. - Asbestos personal injury claimants' negligence and bad faith claims against an insurance company are barred not only by an injunction in former Chapter 11 debtor W.R. Grace & Co.'s bankruptcy case but also by past litigation in which the same claims were twice found to be subject to the injunction, the insurer says in a July 17 brief filed in response to the claimants' summary judgment bid in Delaware federal bankruptcy court (In re: W.R. Grace & Co., et al., No. 01-01139 [Ralph Hutt and Carl Osborn v. Maryland Casualty Company, No. 14-50867], D. Del. Bkcy.).

    Mealey's Bankruptcy - Insurer Drops Dismissal Bid In Rapid-American Declaratory Judgment Action

    NEW YORK - One of three insurance companies sued by Chapter 11 debtor Rapid-American Corp. and its asbestos creditors for $64 million in remaining policy limits for asbestos claims on July 20 withdrew its dismissal motion in New York federal bankruptcy court in favor of allowing the debtor to file its proposed amended complaint (Rapid-American Corporation, et al. v. Travelers Casualty and Surety Company, et al., No. 15-01095, S.D. N.Y. Bkcy.).

    Mealey's Bankruptcy - Bankruptcy Judge Sets Asbestos Bar Date For Energy Future Claimants

    WILMINGTON, Del. - Asbestos personal injury claimants of Chapter 11 debtor Energy Future Holdings Corp. (EFH), including those who have yet to show any signs of asbestos disease, have until Dec. 14 to file proofs of claim in the bankruptcy case, according to an order filed July 15 in Delaware federal bankruptcy court (In re: Energy Future Holdings Corp., No. 14-10979, D. Del. Bkcy.).

    Mealey's Bankruptcy - New Jersey Property Owner Loses Bid For Reconsideration Of Ruling For Flintkote

    WILMINGTON, Del. - A Delaware federal judge on July 14 declined to reconsider his affirmation of a bankruptcy court's grant of summary judgment to Chapter 11 debtor The Flintkote Co. on a corporate property owner's bid for relief from the bankruptcy stay to pursue state and federal environmental claims against Flintkote (8 E. Frederick Place LLC v. The Flintkote Co., et al., No. 12-1176, D. Del.; 2015 U.S. Dist. LEXIS 91005).

    Mealey's Bankruptcy - Insurance Commissioner Wants Approval Of $200M Settlement With Foreign Bank

    LOS ANGELES - California's insurance commission asked a California court on July 9 to approve a $200 million settlement on behalf of an insolvent insurer with a foreign-owned bank (Insurance Commissioner of the State of California v. Executive Life Insurance Company, No. BS 006912, Calif. Super., Los Angeles Co.).

    Mealey's Bankruptcy - Energy Future Says Asbestos Bar Date Notice Satisfies Due Process

    WILMINGTON, Del. - Chapter 11 debtor Energy Future Holdings Corp. (EFH) on July 13 said it has incorporated most suggestions made by a creditors' committee for the debtor's proposal to notify current and possible future asbestos claimants of a deadline to file proofs of claim but urges the Delaware federal bankruptcy court not to require EFH to publicize the bar date on television (In re: Energy Future Holdings Corp., No. 14-10979, D. Del. Bkcy.).

    Mealey's Bankruptcy - Texas Judge Approves End Of Insolvent Insurer's Liquidation Proceeding

    AUSTIN, Texas - A Texas judge on July 7 dissolved an insurer in liquidation and ordered the closing of the liquidation proceeding (State of Texas v. Western Indemnity Insurance Company, No. D-1-GV-03-002024, Texas, 261st Dist., Travis Co.).

    Mealey's Bankruptcy - W.R. Grace Gets 1-Year Extension To Object To Non-Asbestos Claims

    WILMINGTON, Del. - There are only 24 unresolved non-asbestos claims pending against reorganized Chapter 11 debtor W.R. Grace & Co. and affiliates, out of more than 10,000 non-asbestos proofs of claim filed in the case, and a Delaware federal bankruptcy judge on July 10 gave the debtors another year to object to the remaining claims (In re: W.R. Grace & Co., et al., No. 01-01139, D. Del. Bkcy.).

    Mealey's Bankruptcy - Energy Future Holdings Gets More Time To Remove Civil Actions

    WILMINGTON, Del. - A Delaware federal bankruptcy judge on July 7 gave Chapter 11 debtor Energy Future Holdings Corp. (EFH) more time to remove any of the more than 400 civil lawsuits filed against the debtor, including asbestos personal injury actions, to the bankruptcy court or a federal district court (In re: Energy Future Holdings Corp., No. 14-10979, D. Del. Bkcy.).

    Mealey's Bankruptcy - GM Says Plaintiffs' Bid For Relief From Injunction Raises No New Issues

    NEW YORK - Arguments made by a group of plaintiffs seeking relief from a ruling by the U.S. Bankruptcy Court for the Southern District of New York enforcing a sale order and injunction against suits against General Motors LLC (New GM) raise no issues that haven't already been considered and rejected by the court, New GM argues in a brief filed July 6 (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 - 2nd Circuit Addresses Withdrawal Liability Claim Against Bankruptcy Estate

    NEW YORK - A multiemployer pension plan failed to demonstrate the amount of unfunded benefits attributable to post-petition operation of a bankruptcy estate, the Second Circuit U.S. Court of Appeals ruled on July 2 in a summary order disallowing the plan's administrative expense claim for a portion of the estate's withdrawal liability (Food Employers Labor Relations Association and United Food and Commercial Workers Pension Fund v. The Great Atlantic & Pacific Tea Company, No. 14-3349-bk, 2nd Cir.; 2015 U.S. App. LEXIS 11402).

    Mealey's Bankruptcy - Energy Future Holdings Refuses To Give Asbestos Data To Law Firms

    WILMINGTON, Del. - Chapter 11 debtor Energy Future Holdings Corp. (EFH) on June 26 denied a request by nine law firms representing tens of thousands of asbestos claimants to provide information on EFH and affiliates about their asbestos use and products and to delay a hearing on setting an asbestos claims bar date, saying the debtor is already working with a creditors' committee on proposed forms of notice and a noticing plan for the bar date that will satisfy due process for current and future asbestos claimants (In re: Energy Future Holdings Corp., No. 14-10979, D. Del. Bkcy.).

    Mealey's Bankruptcy - No Bad Faith In Omission Of Asbestos Action From Bankruptcy, Judge Says

    PHILADELPHIA - A man's omission in his bankruptcy filing of an asbestos action under an eight-year stay does not evidence bad faith, but the trustee still gets the first shot at prosecuting the since-reinstated claim, a federal judge in Pennsylvania held June 23 (Willard E. Bartel, administrator for James T. McQueen v. Charles Kurz & Company Inc., et al., No. MDL 875, 11-30511, E.D. Pa.; 2015 U.S. Dist. LEXIS 81387).

    Mealey's Bankruptcy - Texas Governor Signs Asbestos Trust Disclosure Bill

    AUSTIN, Texas - Texas Gov. Greg Abbott on June 16 signed a bill that will force asbestos and silica personal injury claimants to file any claims they have with bankruptcy trusts before a trial could proceed on their tort system claims, according to a report by the Texas Legislature.

    Mealey's Bankruptcy - Justice Approves Insolvent Insurer's $19 Million Asbestos-Related Settlement

    CONCORD, N.H. - A New Hampshire justice on June 15 approved a $19 million asbestos bodily injury related settlement between a reorganized company's trust and the liquidator of an insolvent insurer (In the Matter of the Liquidation of The Home Insurance Company, No. 03-E-0106, N.H. Sup., Merrimack Co.).

    Mealey's Bankruptcy - Supreme Court: Bankruptcy Lawyers Not Entitled To Fees For Defending Fee Requests

    WASHINGTON, D.C. - 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 million fee award to attorneys who worked on the Chapter 11 case of ASARCO LLC (Baker Botts, LLP, et al. v. ASARCO, LLC, No. 14-103, U.S. Sup.).

    Mealey's Bankruptcy - Claimants, Trust Say Garlock's Bid For Information Goes Too Far

    CHARLOTTE, N.C. - Discovery proposed by Chapter 11 debtor Garlock Sealing Technologies LLC seeking information from the Manville Personal Injury Settlement Trust on the more than 90,000 asbestos claimants in Garlock's bankruptcy case "is patently excessive and should not be permitted," the Official Committee of Asbestos Personal Injury Claimants says in a June 8 objection filed in North Carolina federal bankruptcy court (In re: Garlock Sealing Technologies, LLC, No. 10-31607, W.D. N.C. Bkcy.).