The Senate Judiciary Subcommittee on Federal Courts, Oversight, Agency Action and Federal Rights to hold hearing today at 3 p.m. ET titled "Abusing Chapter 11: Corporate Efforts to Side-Step Accountability Through Bankruptcy." The witness list includes Hon. Judith K. Fitzgerald of Tucker Arensberg, P.C. (Pittsburgh), Prof. David Skeel of the University of Pennsylvania Law School, Kimberly Ann Naranjo of Sandy, Utah, Paul H. Zumbro of Cravath, Swaine & Moore LLP (New York) and Kevin C. Maclay of Caplin & Drysdale (Washington, D.C.). For more information and to watch a live webcast of the hearing, please click here.
Click here to read a letter submitted to the subcommittee by law professors concerned by the “Texas 2-Step” strategy, which was recently used by Johnson & Johnson to spin off its Talc-related liabilities from the rights of its assets and to file a new shell corporation, LTL Management LLC, for chapter 11 bankruptcy.
