HarrisMartin: LTL Bankruptcy Judge Grants Motion to Dismiss Second Bankruptcy Petition as ‘Filed in Bad Faith’

TRENTON, N.J. –– The New Jersey bankruptcy court overseeing LTL Management’s second Chapter 11 petition aimed at resolving talcum powder claims has granted motions to dismiss the case, ruling “the evidentiary record fixed at trial does not establish sufficient ‘imminent’ or ‘immediate’ financial distress to satisfy the criteria enunciated by the 3rd Circuit.”

Hon. Michael B. Kaplan of the U.S. Bankruptcy Court for the District of New Jersey released the decision on July 28, just weeks after overseeing a four-day hearing on the matter during which several experts and LTL representatives took the stand.

“Simply put,” the court ruled, “the …