Judge Denies G-I Holdings' Bid to Dismiss Fraudulent Transfer Lawsuit

NEW YORK - A federal judge in New York has refused to dismiss a lawsuit filed by the official committee of asbestos claimants for the G-I Holdings bankruptcy, finding that allegations of fraudulent conveyance on the part of the debtor and its CEO Samuel Heyman have been properly pled. Official Committee of Asbestos Claimants of G-I Holdings, Inc. v. Samuel J. Heyman, No. 01cv8539 (S.D. N.Y.).

According to U.S. District Judge Robert W. Sweet's April 9 order, the committee has adequately alleged that G-I's predecessor, GAF, either was insolvent or made insolvent when in 1997 the majority of the company's …