Lowenstein Sandler's Bankruptcy & Restructuring Department led the successful representation of firm client Sumitomo Corporation of Americas (SCOA) in connection with the restructuring of SCOA's wholly-owned subsidiary, Presperse Corporation, resulting in what is believed to be the first talc-related Chapter 11 case in which a plan of reorganization containing a 524(g) personal injury channeling injunction was confirmed and effectuated.
Judge Michael B. Kaplan of the U.S. Bankruptcy Court for the District of New Jersey confirmed Presperse's 524(g) Chapter 11 plan and Judge Robert Kirsch of the U.S. District Court for the District of New Jersey affirmed the plan. The plan settles hundreds of current talc personal injury claims through a $50 million (less bankruptcy fees and costs) contribution to fund a talc/asbestos personal injury trust. All talc claims will be channeled to the trust.
The plan, which resolves all current and future talc claims asserted against Presperse, received unanimous support from talc plaintiffs that voted on the plan, and also incorporates a settlement with The Hartford. The approval of the plan allows Presperse to complete its restructuring less than one year after its initial filing for relief.
The Lowenstein team included Jeffrey D. Prol, Bruce S. Nathan, and Philip J. Gross.