Judges Rule Bankruptcy Filing Invalid
A panel of three judges handed down a lengthy invalidation of LTL’s bankruptcy declaration. The decision focused on financial distress, a requirement for valid Chapter 11 bankruptcy. The panel undertook a thorough examination of LTL’s finances and found them without distress. In fact, the decision notes LTL had access to enough cash to comfortably cover its liabilities.
The judges went on to describe LTL as a shell company created only to defend against talc claims while protecting financial assets. The panel closed with a statement that seems to convey the decision and the panel’s opinion of the situation.
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