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Mealey's Asbestos Bankruptcy

  • February 15, 2019

    Government Continues Attacks On FCRs, This Time In Maremont Case

    WILMINGTON, Del. — The U.S. trustee for the Chapter 11 case of Maremont Corp. filed an objection Feb. 14 in Delaware federal bankruptcy court to the appointment of the debtor’s chosen future claimants’ representative (FCR), saying the court should accept FCR nominations from all interested parties, as was done recently in another asbestos bankruptcy case (In re:  Maremont Corporation, et al., No. 19-10118, D. Del. Bkcy.).

  • February 15, 2019

    Talc Supplier Hits Chapter 11 Seeking To Shed Increasing Asbestos Liabilities

    WILMINGTON, Del. — Facing mounting asbestos injury litigation while maintaining that its talc product is safe, Johnson & Johnson supplier Imerys Talc America Inc. filed for Chapter 11 protection Feb. 13 in Delaware federal bankruptcy court, seeking to continue its talc mining and distribution business and establish a trust to pay asbestos claims (In re:  Imerys Talc America, Inc., et al., No. 1:19-bk-10289, D. Del. Bkcy.).

  • February 14, 2019

    Rapid-American Seeks Summary Judgment On 2 Asbestos Coverage Issues

    NEW YORK — Chapter 11 debtor Rapid-American Corp. and asbestos claimant representatives filed two summary judgment motions Feb. 8 in New York federal bankruptcy court in an adversary action seeking to resolve the two remaining issues in a dispute with insurers over coverage for asbestos liability (Rapid-American Corporation, et al. v. Travelers Casualty and Surety Company, et al., No. 15-01095, S.D. N.Y. Bkcy.).

  • February 12, 2019

    Plan Confirmation For Fraser’s Boiler Service Faces Hurdles

    TACOMA, Wash. — The plan of reorganization for Chapter 11 debtor Fraser’s Boiler Service Inc. meets all the requirements in the U.S. Bankruptcy Code for confirmation, the company says in a Feb. 6 preconfirmation hearing statement in Washington federal bankruptcy court, while the U.S. trustee and certain insurers counter in their statements filed the same day that the plan was not filed in good faith and cannot be confirmed (In re:  Fraser’s Boiler Service, Inc., No. 18-41245, W.D. Wash. Bkcy.).

  • February 12, 2019

    U.S. Trustee Names 3 Candidates For FCR In Fairbanks Bankruptcy

    ROME, Ga. — The U.S. trustee for the Chapter 11 case of The Fairbanks Co. on Jan. 31 submitted the names of three candidates for an asbestos future claimants’ representative (FCR), a process originally opposed by the debtor and asbestos committee but now backed by both, according to the trustee’s notice in Georgia federal bankruptcy court (In re The Fairbanks Company, No. 18-41768, N.D. Ga. Bkcy.).

  • February 11, 2019

    Bankruptcy Court Erred In Naming Future Representative, U.S. Trustee Argues

    TRENTON, N.J. — A bankruptcy court clearly misapplied federal bankruptcy law in appointing a future claimants’ representative (FCR) for asbestos claimants in Duro Dyne National Corp.’s Chapter 11 case, so the appointment should be vacated, the U.S. trustee says in a Feb. 8 opening brief for his appeal of the appointment in New Jersey federal court (Andrew R. Vara v. Duro Dyne National Corp., et al., No. 3:18-cv-15563, D. N.J.).

  • February 11, 2019

    Sheet Metal Workers’ Union Says Debtor Ignores Trademark Infringement Claims

    TRENTON, N.J. — A labor union on Feb. 6 objected to the confirmation of the reorganization plan for Chapter 11 debtor Duro Dyne National Corp., telling a New Jersey federal bankruptcy court that the plan fails to address the union’s $7.6 million proof of claim for the company’s alleged infringement and counterfeiting of the union’s trademark on doors it manufactured (In re:  Duro Dyne National Corp., et al., No. 18-27963, D. N.J. Bkcy.).

  • February 6, 2019

    U.S. Trustee Names Asbestos Committee For New Debtor Maremont Corp.

    WILMINGTON, Del. — Five asbestos claimants of new Chapter 11 debtor Maremont Corp. and their law firms will serve on the Committee of Asbestos Personal Injury Claimants for the case, according to a Feb. 4 notice from the U.S. trustee on the committee’s appointment (In re:  Maremont Corporation, et al., No. 19-10118, D. Del. Bkcy.).

  • February 1, 2019

    Denial Of Asbestos Claimants’ Contribution Application Affirmed By Federal Judge

    WILMINGTON, Del. — A Delaware federal judge on Jan. 30 denied a request by asbestos claimants to have the debtors in the Chapter 11 case of Energy Future Holdings Corp. pay their attorney fees based on the claimants’ “substantial contribution” to the case, finding that the debtors saw no significant benefits from the claimants’ work (Sherry Fenicle, et al. v. EFH Plan Administrator Board, et al., Nos. 18-877 and 18-878, D. Del., 2019 U.S. Dist. LEXIS 14390).

  • January 28, 2019

    Asbestos Creditors Fail In Fight For Future Claimants Of Energy Future Holdings

    WILMINGTON, Del. — Asbestos claimants’ challenge to the constitutionality of discharging claims of future but yet unknown disease sufferers are statutorily moot because it affects the validity of former Chapter 11 debtor Energy Future Holdings Corp.’s entire reorganization plan, a Delaware federal judge ruled Jan. 24 in dismissing the claimants’ appeal of the plan’s approval (Sherry Fenicle, et al. v. Energy Future Holdings Corp., et al., No. 18-381, D. Del., 2019 U.S. Dist. LEXIS 11194).

  • January 23, 2019

    Maremont, Subsidiaries File For Bankruptcy With Prepackaged Asbestos Plan

    WILMINGTON, Del. — With the preapproval of 100 percent of asbestos claimants, a nonoperating subsidiary of commercial vehicle and industrial products maker Meritor Inc. filed a prepackaged Chapter 11 plan of reorganization on Jan. 22 in Delaware federal bankruptcy court, looking to resolve its asbestos liabilities through a Section 524(g) trust (In re:  Maremont Corporation, et al., No. 19-10118, D. Del. Bkcy.).

  • January 23, 2019

    Bankruptcy Judge Approves Oakfabco’s Amended Disclosure Statement

    CHICAGO — With the final settlement with insurers in place in the Chapter 11 case of boiler company Oakfabco Inc., an Illinois federal bankruptcy judge on Jan. 16 approved the disclosure statement for the debtor’s plan of liquidation and set a March date for the plan confirmation hearing (In re:  Oakfabco, Inc., No. 15-27062, N.D. Ill. Bkcy.).

  • January 23, 2019

    Bestwall Gets More Time To File Reorganization Plan In Disputed Chapter 11 Case

    CHARLOTTE, N.C. — With two key issues yet to be decided in the Chapter 11 case of Bestwall LLC, including whether to dismiss the case, a North Carolina federal bankruptcy judge on Jan. 7 gave the company more time to file a plan of reorganization (In re Bestwall LLC, No. 17-31795, W.D. N.C. Bkcy.).

  • January 22, 2019

    On Remand, Insurers Seek Affirmance Of Bankruptcy Injunction Protection

    WILMINGTON, Del. — Because insurers’ asbestos policies with former Chapter 11 debtor W.R. Grace & Co. are “legally relevant” to state court tort claims filed against the insurers under the U.S. Bankruptcy Code, the insurers are protected from the claims by a bankruptcy injunction, they assert in a Dec. 21 brief on remand in Delaware federal bankruptcy court (Continental Casualty Co., et al. v. Jeremy B. Carr, et al., No. 15-50766, D. Del. Bkcy.).

  • January 18, 2019

    Johns-Manville Successor Asks For Injunction Barring Asbestos Claims

    NEW YORK — The successor to the PVC pipe business of former Chapter 11 debtor Johns-Manville Corp. asked a New York federal bankruptcy judge Jan. 16 to issue a “reiterative injunction” barring state court asbestos injury claims against the successor based on the bankruptcy protections implemented when it bought the business (In re Johns-Manville Corporation, et al., No. 82-11656, S.D. N.Y. Bkcy.).

  • January 16, 2019

    3rd Circuit To Rule On Jurisdiction With Merits Of Hospital, W.R. Grace Dispute

    PHILADELPHIA — The question of whether the Third Circuit U.S. Court of Appeals has jurisdiction to hear an appeal of a bankruptcy court’s denial of certification for a class of property owners seeking damages for asbestos from former Chapter 11 debtor W.R. Grace & Co. will be decided along with the merits of the appeal, a Third Circuit panel ruled Jan. 10 (In re Grace & Co., et al., No. 18-1960, 3rd Cir.).

  • January 14, 2019

    Jury Returns Defense Verdict In Illinois Asbestos Joint Compound Case

    CHICAGO — A Chicago jury returned a defense verdict in a retrial of a chrysotile asbestos case involving drywall products on Dec. 14, sources told Mealey Publications (Jo Ann Startley, et al. v. Welco Manufacturing Co., No. 20140L-002716, Ill. Cir., Cook Co.).

  • January 10, 2019

    7th Circuit Finds Judgment Mooted Employer’s Environmental Asbestos Claims Appeal

    MADISON, Wis. — An asbestos defendant’s success at summary judgment moots its appeals of previous rulings that found that environmental exposure claims fell outside Wisconsin’s statutory immunity for employers, the Seventh Circuit U.S. Court of Appeals held Jan. 8 (Pamela Kilty, et al. v. Weyerhaeuser Co., et al., No. 18-1974, Scott Spatz, et al. v. Weyerhaeuser Co., et al., No. 18-1975, 7th Cir.).

  • January 7, 2019

    Judge Stays Fraser’s Settlement Approvals Pending Insurers’ Appeal

    TACOMA, Wash. — A Washington federal judge in a Jan. 4 minute order agreed with former asbestos insurers of Chapter 11 debtor Fraser’s Boiler Service Inc. that a bankruptcy court’s orders approving settling insurers’ buyback of policies in settlements with the debtor should be stayed until Fraser’s confirmation hearing (In re:  Fraser’s Boiler Service, Inc., Nos. 3:18-cv-5637 and 3:18-cv-05638, W.D. Wash.).

  • January 4, 2019

    Government Shutdown Halts U.S. Trustee’s Appeal Of FCR Appointment

    TRENTON, N.J. — An appeal over whether a bankruptcy judge erred in appointing a future claimants’ representative (FCR) for asbestos claimants in Duro Dyne National Corp.’s Chapter 11 case was put on hold Dec. 31 by a New Jersey federal judge due to the partial shutdown of the federal government (Andrew R. Vara v. Duro Dyne National Corp., et al., No. 3:18-cv-15563, D. N.J.).