A recent decision by the Third Circuit Court of Appeals has preserved the right of a non-operating debtor with asbestos liability to confirm a liquidating plan of reorganization. See In re Am. Capital Equip. LLC, No. 07-2546, 07-2746, 296 Fed. Appx. 270 (3d Cir. (Pa.) Oct. 16, 2008). The Third Circuit overruled objections by insurance companies that a bankruptcy case of a non-operating debtor, Skinner Engine Company, could serve no legitimate bankruptcy purpose and should be dismissed.
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by: Omar J. Alaniz
Baker Botts L.L.P.; Dallas
A recent decision from the Chateaugay Corp. bankruptcy cases should give debtors additional comfort that extensive publication of a bar date notice is sufficient to discharge tort liabilities to unknown creditors. Judge Burton R. Lifland of the U.S. Bankruptcy Court for the Southern District of New York held that plaintiffs were enjoined, pursuant to the LTV debtors' confirmed plan, from asserting their asbestos causes of action as they had constructive notice of the LTV debtors' bar date. In re Chateaugay Corp., et al., No. 86-11270, et al., slip op. (Bankr. S.D.N.Y. Jan. 14, 2009).
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The 27th Annual Spring Meeting: Washington, D.C. like you have never seen it before! Located a few minutes from Capitol Hill, on the historic Potomac River, the Gaylord National Resort & Spa offers the most deluxe meeting and event space in the area. This year's conference will be held April 1-4 and will have a special focus on the tough policy choices facing the new administration and Congress.
The Mass Torts Committee will hold a session on Friday afternoon at 4:00 p.m. entitled "Ethics in Mass Tort Bankruptcies: The Issues Are Only Outnumbered by the Claimants." Karen Shaer of The Garden City Group, Inc. in Melville, N.Y. will moderate the session. Panelists will include Sander L. Esserman of Stutzman, Bromberg, Esserman & Plifka, P.C. in Dallas, Roger Frankel of Orrick, Herrington & Sutcliffe LLP in Washington, D.C. and Hon. Robert C. Pate of the Law Office of Robert C. Pate in Corpus Christi, Texas. Click here to register today!
