Mon 01/30/2023 11:23 AM
Relevant Document:Opinion
The U.S. Court of Appeals for the Third Circuit has just issued an opinion in the LTL Management cases, reversing the Bankruptcy Court's decision denying the Talc claimants' motions to dismiss the debtor's chapter 11 case. The Third Circuit dismisses LTL's chapter 11 petition.
The opinion states:
"We start, and stay, with good faith. Good intentions— such as to protect the J&J brand or comprehensively resolve litigation—do not suffice alone. What counts to access the Bankruptcy Code’s safe harbor is to meet its intended purposes. Only a putative debtor in financial distress can do so. LTL was not. Thus we dismiss its petition."
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