Houston’s Bankruptcy Judge Christopher Lopez decided that the newest plan by a Johnson & Johnson subsidiary didn’t qualify for nondebtor releases permissible in asbestos cases.
In the first opinion on the issue after Purdue, Bankruptcy Judge Christopher Lopez holds that Purdue did not change Fifth Circuit law where ‘hundreds’ of ‘opt-out’ plans have been confirmed with nondebtor releases.
Although a UCC lien on ‘accounts’ would attach outside of bankruptcy to proceeds from the sale of real property, Section 552(b) cuts off attachment if the sale occurs after filing
Increasingly, courts are allowing defunct corporations to proceed under the SBRA while individual owners of defunct businesses aren’t being treated as small business debtors in chapter 11.
The finding of proper notice in a confirmation order satisfies the debtor’s burden of proving notice by publication to creditors with future claims, even in the absence of a trust for future creditors, Houston judge says.