Thompson Coburn partner Mark Indelicato was quoted in a recent Law360 article on the Texas trial to determine the fate of Johnson & Johnson’s talc liability spinoff, which may test the “Texas two-step” bankruptcy strategy after a recent Supreme Court decision.
The U.S. bankruptcy judge will hear from 49 witnesses regarding Red River Talc’s $9 billion bankruptcy plan, which plan aims to resolve ovarian cancer claims. Such claims represent more than 99% of J&J’s talc litigation.
Mark told Law360 that the plan’s apparent support from creditors may bolster Red River’s chances of making it across the Chapter 11 finish line. J&J says the prepackaged bankruptcy has the support of 83% of its creditors.
“The fact that it’s a prepack approved by 83%, you can challenge the numbers, I think that’s going to go a long way in the judge’s mind,” he said.
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