Senators Ask Justices to Nix Georgia-Pacific Bankruptcy Move (1)

A bipartisan group of US senators called on the Supreme Court to reject a tactic used by a bankrupt Georgia-Pacific LLC affiliate that they said is causing delays to asbestos victims’ lawsuits.

Senate Judiciary Committee Chair Dick Durbin (D-Ill.) and his fellow committee members Sheldon Whitehouse (D-R.I.) and Josh Hawley (R-Mo.) told the justices in an amicus brief filed Monday that they “share a grave concern regarding the manipulation and misuse of the bankruptcy system” in the bankruptcy of Georgia-Pacific unit Bestwall LLC. The legal strategy at issue is known as the Texas Two-Step, which allows a company to spin ...