A Johnson & Johnson unit was rightly thrown out of bankruptcy court because the bankruptcy wasn’t filed in good faith, an appellate court said.
LTL Management LLC wasn’t financially distressed and therefore its bankruptcy wasn’t filed in good faith, the US Court of Appeals for the Third Circuit ruled in a nonprecedential opinion Thursday, upholding a dismissal order from the US Bankruptcy Court for the District of New Jersey.
“On the record before us, the ‘attenuated’ possibility of insolvency far in the future does not offer sufficient financial distress today to justify a Chapter 11 filing,” Judge Thomas L. Ambro ...
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