Below is our initial take on some of the major bankruptcy-related developments from the past week:
U.S. Bankruptcy Judge Craig Whitley denied Johnson & Johnson’s request for a temporary pause in cases claiming J&J’s talc baby powder hurt tens of thousands of women.
S&K Take: This case is checking the box on all bankruptcy hot topics. First venue, and now non-debtor litigation. This was interesting regardless -- debtors seeking injunctions to stay litigation involving non-debtors certainly had momentum after cases like Purdue and Mallinckrodt. Could this mark a turning of the tide?
Bar Date Notice by Email Is Insufficient, Delaware’s Judge Goldblatt Says | American Bankruptcy Institute
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S&K Take: This decision highlights an antiquated Bankruptcy Rule – that service must be effectuated by mail. Obviously how people do business has changed, as Judge Goldblatt observes, and an update of the Code/Rules to acknowledge that seems to be in order.
USA Gymnastics received approval from U.S. Bankruptcy Judge Robyn Moberly to start soliciting votes for its proposed reorganization plan to settle claims with gymnasts who were sexually abused by Larry Nassar, the former team doctor.
S&K Take: The USA Gymnastics disclosure statement was approved and the Debtors will begin the solicitation process. This could be the beginning of a resolution for another recent bankruptcy case with a tragic backstory.
As the halted Western indie film Rust faces internal financial pressures following the fatal shooting of the film’s cinematographer, Chapter 7 liquidation could provide the production vehicle some kind of liability shields.
S&K Take: The events that took place on the “Rust” set have been in the news quite frequently, and a high-profile chapter 7 could be in the offing.