3rd Circuit Affirms Bankruptcy Court Order Dismissing LTL Management’s Second Chapter 11 Petition

PHILADELPHIA –– The 3rd Circuit U.S. Court of Appeals has denied LTL Management’s appeal of a Bankruptcy Court order dismissing their second bankruptcy petition, concluding that the order was “comprehensive” and that “when future insolvency is a realistic possibility based on meaningful evidence –– not just the result of a highly speculative ‘worst-case’ scenario –– a mass tort defendant has a viable case for bankruptcy.”

In the July 25 opinion, the 3rd Circuit opined that the Bankruptcy Court’s finding “bears a rational relationship to … supportive evidentiary data.”

The 3rd Circuit first addressed LTL’s position that the Bankruptcy Court erred …