North Carolina Bankruptcy Judge Weighs in on ‘Texas Two-Step’ Legal Maneuver During Hearing

CHARLOTTE, N.C. –– The North Carolina federal judge that recently ruled that the bankruptcy proceeding of LTL Management should proceed in New Jersey briefly outlined his opinion of the “Texas Two-Step” legal maneuver during a recent hearing, noting that he has found in other cases of this nature that “there were prejudicial effects of the corporate restructuring on the corporate claimants, and that viable claims existed to potentially attack the merger.”

In audio transcripts of the nearly four-hour Nov. 10 hearing reviewed by HarrisMartin Publishing, Hon. Craig Whitley of the U.S. Bankruptcy Court for the Western District of North Carolina …