Trane Technologies’ Bankrupt Spinoffs Ask to Curb Committee Power

Two Trane Technologies Plc spinoffs asked a bankruptcy court to limit a probe by a group of asbestos injury victims into Trane’s use of a corporate maneuver that’s come under public scrutiny.

Ireland-based Trane performed a reverse merger and offloaded its asbestos liability to the spun-off units, Aldrich Pump LLC and Murray Boiler LLC, placing them in Chapter 11. A bankruptcy judge in New Jersey recently upheld Johnson & Johnson’s use of the same move, known as the Texas Two-Step.

In light of that decision, the Committee of Asbestos Personal Injury Claimants should be allowed to investigate claims only for ...