J&J talc claimants committee objects to extending exclusive periods

Chicago, April 28 – The official committee of talc claimants for Johnson & Johnson subsidiary LTL Management LLC’s Chapter 11 bankruptcy case submitted an objection to LTL’s bid to extend the exclusive periods to file a plan and solicit acceptances thereof, according to a filing on Wednesday with the U.S. Bankruptcy Court for the District of New Jersey.

The committee points out that approval of a plan by a 425 trust must be approved by a 75% super majority of the tort claimants.

Because of this, the committee asserts, any plan filed by the debtor without the overwhelming support of the talc claimants committee will be “costly and a total waste of time, as the confirmation prospects of any such plan would be remote.”

The committee, for that reason, is in the process of formulating its own plan, which it believes will have broader appeal.

The committee asserts that extending exclusivity, giving LTL more time to strategize and file a scorched earth litigation strategy, will only waste time.

“Exclusivity is not required to achieve a confirmable plan, and we submit that continued exclusivity actually works to hinder it,” the filing asserted.

Ultimately, the committee would like exclusivity to end and to be able to file a plan concurrent with any plan filed by the debtor.

Johnson & Johnson is a consumer products company based in New Brunswick, N.J. The LTL Management subsidiary filed Chapter 11 bankruptcy on Oct. 14 under case number 21-30589.

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