Mealey's Asbestos Bankruptcy

  • February 16, 2018

    Kaiser Gypsum Debtors Agree To Claim Amount In Insolvent Insurers’ Run-Off

    CHARLOTTE, N.C. — A North Carolina federal bankruptcy judge on Feb. 17 approved in a minute order a settlement between Chapter 11 debtors Kaiser Gypsum Co. Inc. and Hanson Permanente Cement Inc. and the joint scheme administrator for two insolvent British insurers, setting claim values for the debtors in the insurers’ run-off proceedings (In re Kaiser Gypsum Company, Inc., et al., No. 16-31602, W.D. N.C. Bkcy.).

  • February 15, 2018

    Rapid-American Denied Protective Order For Insurers’ Subpoenas

    NEW YORK — Chapter 11 debtor Rapid-American Corp. and asbestos claimants in its bankruptcy case do not have standing to challenge subpoenas served by insurers to asbestos claims-processing facilities seeking evidence of fraud in the asbestos trust system, and besides, the information sought is relevant to the debtor’s declaratory judgment action against the insurers, a New York federal bankruptcy judge held Feb. 12 (Rapid-American Corporation, et al. v. Travelers Casualty and Surety Company, et al., No. 15-01095, S.D. N.Y. Bkcy., 2018 Bankr. LEXIS 378).

  • February 15, 2018

    Insurer Asks For Relief From Kaiser Gypsum’s Stay To Seek Settlement Reimbursement

    CHARLOTTE, N.C. — An insurer of Chapter 11 debtor Hanson Permanente Cement Inc. sought relief from the automatic bankruptcy stay Feb. 13 in North Carolina federal bankruptcy court so it can pursue $2.8 million in reimbursements from other insurers for settlement payments made to asbestos personal injury claimants under a 2009 agreement (In re Kaiser Gypsum Company, Inc., et al., No. 16-31602, W.D. N.C. Bkcy.).

  • February 6, 2018

    $750,000 For Claim In Insurer’s Liquidation Is Best Deal, Bestwall Says

    CHARLOTTE, N.C. — Chapter 11 debtor Bestwall LLC is willing to take $750,000 in cash now from a purchaser of a defunct insurer’s asbestos policy rather than wait for years to see if it can collect the policy’s remaining $3.75 million from the insurer’s liquidation proceedings, Bestwall says in a Feb. 1 motion in North Carolina federal bankruptcy court (In re Bestwall LLC, No. 17-31795, W.D. N.C. Bkcy.).

  • February 5, 2018

    Bestwall Nominates Sander Esserman As Future Claimants’ Representative

    CHARLOTTE, N.C. — Chapter 11 debtor Bestwall LLC asked a North Carolina federal bankruptcy court on Feb. 1 to appoint Dallas attorney Sander L. Esserman to represent future asbestos personal injury claimants in the case (In re Bestwall LLC, No. 17-31795, W.D. N.C. Bkcy.).

  • January 29, 2018

    Bankruptcy Judge Abstains From Hearing Injunction Bid For Environmental Claims

    NEWARK, N.J. — A New Jersey federal bankruptcy judge on Jan. 26 abstained from deciding a request by former Chapter 11 debtor G-I Holdings Inc. to enforce its reorganization plan injunction to bar indemnification claims for cleanup of a polluted industrial site, saying a state court is “fully capable of adjudicating” the claims and G-I’s injunction bid (In re:  G-I Holdings, Inc., et al., Nos. 01-30135 and 01-38790, D. N.J. Bkcy., 2018 Bankr. LEXIS 214).

  • January 26, 2018

    Man’s Claims Against Johns-Manville Broker Barred, Court Rules Again

    NEW YORK — An asbestosis sufferer “received due process in every possible respect” as a future claimant in the long-running Chapter 11 case of Johns-Manville Corp., so he cannot pursue in personam claims against the company’s insurance broker, a New York federal bankruptcy judge held Jan. 24 on remand (In re Johns-Manville Corporation, et al., No. 82-11656, S.D. N.Y. Bkcy., 2018 Bankr. LEXIS 166).

  • January 25, 2018

    Bestwall’s Removal Period Request Trimmed By Bankruptcy Judge

    CHARLOTTE, N.C. — Chapter 11 debtor Bestwall LLC on Jan. 23 received an extension from a North Carolina federal bankruptcy judge on the time it has to remove any lawsuit filed against the company to a district court, though the judge gave the debtor half the time it asked for (In re Bestwall LLC, No. 17-31795, W.D. N.C. Bkcy.).

  • January 25, 2018

    Oakfabco Asbestos Claimants Say CNA Knew Of More Coverage When Making Deal

    CHICAGO — The Asbestos Claimants’ Committee in the Chapter 11 Case of Oakfabco Inc. on Jan. 2 filed a nine-count fraudulent inducement adversary complaint against Oakfabco insurers and a claims management company alleging that they knew that additional coverage was available for asbestos claims when the insurers attempted to settle with Oakfabco before it filed for bankruptcy (Asbestos Claimants Committee v. American Casualty Company of Reading, PA, et al., No. 18-00002, N.D. Ill. Bkcy.).

  • January 24, 2018

    Former Judge To Mediate Row Over Interest Rate For W.R. Grace IRS Refund

    WILMINGTON, Del. — A retired U.S. bankruptcy judge will mediate a dispute between the Internal Revenue Service and reorganized chemical conglomerate W.R. Grace & Co. over a $1.6 million tax refund, according to a stipulation filed recently in a Delaware federal court appeal (In re:  W.R. Grace & Co., et al., No. 17-cv-1588, D. Del.).

  • January 24, 2018

    Geo. V. Hamilton’s Disclosure Statement Wins Conditional Approval

    PITTSBURGH — A Pennsylvania federal bankruptcy judge on Jan. 16 conditionally approved the disclosure statement for Chapter 11 debtor Geo. V. Hamilton Inc.’s plan of reorganization, finding that the statement provides “adequate information” to claim holders under the U.S. Bankruptcy Code (In re Geo. V. Hamilton, Inc., No. 15-23704, W.D. Pa. Bkcy.).

  • January 23, 2018

    Insurers Win Relief From Kaiser Gypsum’s Stay To Seek Coverage Case Costs

    CHARLOTTE, N.C. — Chapter 11 debtor Kaiser Gypsum Co.’s insurers received relief from the automatic bankruptcy stay so they can pursue the repayment of their costs from the debtor’s primary insurer in a California state court asbestos coverage lawsuit, according to a Dec. 27 North Carolina federal bankruptcy court order (In re Kaiser Gypsum Company, Inc., et al., No. 16-31602, W.D. N.C. Bkcy.).

  • January 22, 2018

    Kaiser Gypsum Receives Final Extension For Filing Chapter 11 Plan

    CHARLOTTE, N.C. — Chapter 11 debtor Kaiser Gypsum Co. got its last chance to have the exclusive right to map out the company’s reorganization when a North Carolina federal bankruptcy judge on Jan. 3 approved its request for more time to file a plan (In re Kaiser Gypsum Company, Inc., et al., No. 16-31602, W.D. N.C. Bkcy.).

  • January 22, 2018

    Protection From Asbestos Claims Extended For Bestwall Affiliates

    CHARLOTTE, N.C. — More than 100 affiliates of Chapter 11 debtor Bestwall LLC are protected from asbestos lawsuits through March 26 after a North Carolina bankruptcy judge entered a preliminary injunction Dec. 7 in an adversary case against the debtor’s thousands of asbestos claimants (Bestwall LLC v. Those Parties Listed on Appendix A to Complaint and John and Jane Does 1-1000, No. 3:17-ap-03105, W.D. N.C. Bkcy.).

  • January 19, 2018

    Dismissal Of Bankrupt Asbestos Defendants Paves Way For Long-Pending Appeal

    BIRMINGHAM, Ala. — A federal judge in Alabama on Jan. 9 adopted a report recommending dismissal of two formerly bankrupt asbestos companies from a case, saying the subsequent bankruptcy of a previously dismissed defendant does not prevent the action.  The ruling clears the way for an appeal of a 2011 order dismissing 17 defendants (Charles Corley, et al. v. Fairbanks Morse Pump Corp., et al., No. 09-1812, N.D. Ala.).

  • January 19, 2018

    Bestwall Judge Stands By Hiring Of 2 Law Firms For Asbestos Claimants’ Team

    CHARLOTTE, N.C. — A North Carolina federal bankruptcy judge on Jan. 4 refused to reconsider her decision to allow two law firms as local counsel to represent the Official Committee of Asbestos Personal Injury Claimants in the Chapter 11 case of Bestwall LLC, saying the hirings will not necessarily result in a duplication of work or drive up costs, as the U.S. bankruptcy administrator had argued (In re Bestwall LLC, No. 17-31795, W.D. N.C. Bkcy.).

  • January 19, 2018

    Thorpe Trust Gets Extension To Answer Manville Trust’s Suit Over Indemnification

    NEW YORK — The Thorpe Insulation Company Asbestos Settlement Trust in California has until Feb. 5 to answer or move to dismiss an adversary complaint filed by the Manville Personal Injury Settlement Trust in New York seeking a declaration that the Manville Trust is not obligated to indemnify the Thorpe Trust for thousands of paid asbestos personal injury claims, according to a stipulation and order signed Jan. 5 by a New York federal bankruptcy judge (Manville Personal Injury Settlement Trust v. Thorpe Insulation Company Asbestos Settlement Trust, No. 1:17-ap-1186, S.D. N.Y. Bkcy.).

  • January 19, 2018

    New York Court Affirms Sanctions For Destruction Of Evidence

    NEW YORK — A New York court on Jan. 18 affirmed imposition of an adverse jury instruction as a sanction for a company’s “egregious” loss or destruction of between 37 and 77 boxes of potential evidence involving its asbestos-containing pipe (Richard Warren v. Amchem Products Inc., et al., No. 5493N 40000/88 190281/14, N.Y. Sup., App. Div., 1st Dept., 2018 N.Y. App. Div. LEXIS 351).

  • January 16, 2018

    New York Top Court Rejects Brake-Grinding Maker’s Challenge To $9M Asbestos Award

    NEW YORK — New York’s top court on Jan. 11 denied leave to appeal after a lower court found a manufacturer of brake-grinding machines had a duty to warn about the dangers the use of its machines with asbestos-containing brakes posed and affirmed a stipulated $9 million award (Walter Miller v. BMW of North America LLC, et al., No. 2017-1076, N.Y. App., 2018 N.Y. LEXIS 48).

  • January 12, 2018

    Vice Chancellor Sends Insurers’ Audit Dispute With Asbestos Trust To Trial

    WILMINGTON, Del. — Insurers’ rights to audit the T H Agriculture & Nutrition LLC (THAN) asbestos trust for evidence fraud must be decided at trial because the insurers and the trust put forth reasonable definitions of what those audit rights are, defeating summary judgment or dismissal, a Delaware state vice chancellor decided Jan. 11 (AIU Insurance Company, et al. v. Philips Electronics North America Corporation, et al., No. 9852, Del. Chanc.).