In a huge setback for Congoleum Corp., the 3rd Circuit has reversed a bankruptcy judge's approval of the company's "pre-packaged" bankruptcy plan over conflicts of interest. Law professor Lester Brickman called the decision "the latest in a series of 3rd Circuit pronouncements essentially holding that the 'business as usual' approach in which bankruptcy courts had largely rubber-stamped plaintiffs lawyers' effective control over asbestos bankruptcy proceedings ... is no longer to be tolerated."
Conflicts of Interest Put End to Congoleum's Pre-Packaged Bankruptcy Plan
The Legal Intelligencer
October 18, 2005