3rd Circuit Affirms Denial of Bankruptcy Trustee for G-I Holdings

PHILADELPHIA -- The U.S. 3rd Circuit Court of Appeals has affirmed a decision denying asbestos claimants' motion to appoint a bankruptcy trustee for G-I Holdings. In re: G-I Holdings, Inc., No. 03-3188 (3rd Cir.).

In a Sept. 24 decision, the 3rd Circuit clarified an earlier decision in which it held that a presumption exists in favor of retaining a debtor's current management rather than appointing a trustee (In re Marvel /Entertainment Group Inc., 140 F.3d 463 [3d Cir. 1998]). The 3rd Circuit said its reference to the 'heavy presumption against the appointment of an outside trustee' did not relate to …