Georgia-Pacific Asbestos Claimants Appeal Texas Two-Step Ruling

Georgia-Pacific’s asbestos claimants appealed a failed bid to dismiss the company’s liability-limiting bankruptcy, asking a district court to rule that bankruptcy courts don’t have jurisdiction over debtors who aren’t in financial distress.

The notice of appeal, filed Wednesday, comes after Judge Laura T. Beyer of the US Bankruptcy Court for the Western District of North Carolina issued a written ruling rejecting a motion to dismiss the bankruptcy of Bestwall, the Georgia-Pacific unit created to handle asbestos liability. Beyer’s Feb. 21 written order came nearly seven months after she indicated at a hearing she would allow Bestwall to remain in bankruptcy. ...