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Background

Johnson & Johnson’s newly-created subsidiary, LTL Management LLC (“LTL”), filed for bankruptcy in the Western District of North Carolina on October 14, 2021, with the primary goal of resolving thousands of tort claims (and nearly 40,000 pending lawsuits) related to the company’s talcum powder-based products – LTL’s only liabilities.  LTL was formed two days before the filing under a Texas law which allowed Johnson & Johnson subsidiary Johnson & Johnson Consumer Inc. to split into two new entities:  one (LTL) assigned its billions in talc liability and one (“New JJCI”) assigned with its remaining assets.  As part of the transaction, LTL also received certain assets, including approximately $6 million in cash and certain royalty streams, which the debtor projects will generate approximately $50 million in revenue per year over the next five years.  Additionally, Johnson & Johnson and New JJCI committed to:  (a) fund a trust with an aggregate amount of $2 billion to pay for current and future tac-related claims asserted against LTL; and (b) pay all costs and expenses of LTL in the normal course of business (up to the full value of New JJCI).


Continue Reading J&J Talc Bankruptcy Case: Events Leading Up To Potential Dismissal Battle

Bloomberg reports that Puerto Rico’s restructuring plan can move forward, with the passage of a new law that allows the island to sell bonds.  This resolves Puerto Rico’s dispute with the commonwealth’s financial oversight board, which threatened to derail its bankruptcy case. [Bloomberg; Oct. 28, 2021]

Reporting from Reuters indicates that the economy grew at

Reuters interviews Representative Cheri Bustos with respect to a bill she proposed last week, which would prevent executives of bankrupt companies who make more than $250,000 per year from receiving bonuses during or in the six months before a bankruptcy.  [Reuters; October 19, 2021]

CNBC reports on supply chain issues exacerbated by panic ordering from

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The Wall Street Journal discusses how the pandemic altered retail shopping habits, and the anticipated closure by 2025 of half of remaining mall-based retailers. [WSJ; June 25,

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CNN Business covers the bankruptcy filing of Washington Prime Group, an owner of more than 100

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