ANALYSIS: J&J’s Prepackaged Chapter 11 Gambit for Talc Claims

Chapter 11 debtors with asbestos litigation claims often endure long and drawn out cases. However, a handful of such companies in the past have managed to confirm prepackaged plans of reorganization (“prepacks”). After two unsuccessful forays into Chapter 11 involving the Texas Two-Step, Johnson & Johnson (J&J) through a new subsidiary, Red River Talc LLC, is planning a prepackaged case to resolve asbestos litigation and claims in connection with its talcum powder products.

This piece explores some of the unique challenges of prepackaged asbestos Chapter 11 cases that the J&J affiliate may face in a third attempt at ...