TRENTON, NJ – LTL Management, Inc. (“LTL”) filed a bankruptcy plan of reorganization and disclosure statement on May 15, seeking to fund a $12 billion bankruptcy trust to compensate current and future claimants alleging exposure to Johnson & Johnson talc products.
The proposed plan of reorganization follows a previously announced $8.9 billion settlement between LTL and an Ad Hoc Committee of asbestos claimants in LTL’s second bankruptcy case in the U.S. Bankruptcy Court for the District of New Jersey. LTL was created by Johnson & Johnson under a Texas divisive merger law and originally filed for bankruptcy on October 14, 2021. After the U.S. Third Circuit Court of Appeals ordered dismissal of that case, LTL filed its second bankruptcy petition in the New Jersey bankruptcy court on April 4, 2023.
New Jersey bankruptcy judge Michael Kaplan held a hearing on May 16 regarding motions by claimant committees to dismiss LTL’s second bankruptcy case as well as additional arguments over disclosure and discovery issues. Potentially opening the case to competing reorganization plans, Judge Kaplan set a June 5 deadline for parties to file motions seeking to dismiss LTL’s exclusivity period.
Judge Kaplan set a June 13 hearing on LTL’s disclosure statement and arguments to extend the preliminary injunction in the case; set to expire June 15. Judge Kaplan has proposed a trial in late June or July to formally address motions to dismiss the case.