J&J Unit Ch. 11 Case Shows Texas 2-Step May Be Wrong Move

Law360 recently published an article by Mayer Brown restructuring partners Sean T. Scott and Aaron Gavant and associate Josh Gross, regarding the Third Circuit’s recent decision directing the dismissal of J&J affiliate LTL Management’s mass tort bankruptcy filing.  The article expands upon a prior post on the decision and discusses potential implications of the Third Circuit’s holding that bankruptcy is only justified where the debtor faces “the kinds of problems that justify Chapter 11 relief,” in particular, where the debtor’s financial distress is not only “apparent” but “immediate enough to justify a filing.” A petition for rehearing en banc filed by LTL Management is currently pending.

The full article is available here.