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ABI Journal

June 23, 2023

A Fourth Circuit Dissenter Opposes Mass-Tort Injunctions Protecting Non-Debtors

The Fourth Circuit majority upheld a preliminary injunction barring tort suits against a debtor’s nonbankrupt affiliates following a Texas divisional merger.

4th Circuit

May 26, 2023

Lack of a Common Plan or Scheme Means It Isn’t Single Asset Real Estate

A two-story commercial condominium wasn’t ‘single asset real estate,’ Judge Mastando holds.

2nd Circuit, New York, New York Southern District

May 03, 2023

Ultimate Success of the J&J Subsidiary’s Second ‘Talc’ Bankruptcy Is Up in the Air

The bankruptcy judge only gave nondebtor J&J companies a more limited stay in the second LTL chapter 11 case.

3rd Circuit, New Jersey

January 31, 2023

Third Circuit Reverses and Dismisses J&J’s ‘Baby Powder’ Chapter 11 Case

Circuit Judge Thomas Ambro prohibits big companies from filing chapter 11 cases absent ‘financial distress.’

3rd Circuit

December 01, 2022

The Bankruptcy Code Doesn’t Invalidate Transfer Restrictions in an Operating Agreement

The transfer restrictions in an LLC’s operating agreement are enforceable in a bankruptcy sale, the Tenth Circuit BAP says.

10th Circuit

October 11, 2022

Court Halts States’ Police and Regulatory Suits against Non-Debtor Johnson & Johnson

In spreading the automatic stay, the bankruptcy court again employed the traditional analysis without recognition that the non-debtors are solvent.

3rd Circuit, New Jersey

September 27, 2022

Judge McAffee Agrees with Former Judge Sontchi on Authorized Corporate Actions

The automatic stay does not bar increasing authorized shares when the debtor is a minority shareholder.

4th Circuit, North Carolina, North Carolina Eastern District

June 24, 2022

Delaware Supreme Court: No ‘Insolvency Exception’ for Asset Sales

Delaware corporations must have shareholder approval to sell all or substantially all assets outside of bankruptcy.

3rd Circuit, Delaware

March 01, 2022

Johnson & Johnson Survives a Motion to Dismiss that Alleged a Bad Faith Filing

Judge in New Jersey explains why chapter 11 is the best alternative for a large company to deal with mass torts.

3rd Circuit, New Jersey

September 30, 2021

A Claim Objection Can Head Off Election of a Permanent Chapter 7 Trustee

A creditor can’t elect a trustee to pick its adversary in a lawsuit, Bankruptcy Judge Gunn says.

D.C. Circuit