Chapter

Bankruptcy Transformed

in Mass Torts in a World of Settlement

Published by University of Chicago Press

Published in print October 2007 | ISBN: 9780226567600
Published online March 2013 | e-ISBN: 9780226567624 | DOI: http://dx.doi.org/10.7208/chicago/9780226567624.003.0009
Bankruptcy Transformed

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This chapter describes how the defeat of the class settlements in Amchem Products, Inc. v. Windsor and Ortiz v. Fibreboard Corp. has led to even more problematic efforts to replicate those arrangements through “prepackaged” reorganizations of asbestos defendants under § 524(g) of the Bankruptcy Code. It also evaluates how § 524(g) came to dominate peacemaking in asbestos litigation. Section 524(g) would become a blueprint for how private negotiations might largely bypass the conventional reorganization process. The bankruptcy court confirmed the Combustion Engineering prepack, and the district court largely upheld that decision. The dynamics revealed by the Combustion Engineering prepack actually help to point the way toward more productive reform. The most recent addition to the literature on mass tort bankruptcies builds on the insight that reorganization plans allocate not only resources but also risk.

Keywords: class settlements; asbestos defendants; Bankruptcy Code; asbestos litigation; Combustion Engineering prepack; mass tort; peacemaking

Chapter.  9315 words. 

Subjects: Company and Commercial Law

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