CHICAGO (Legal Newsline) - An auto parts manufacturer based in Michigan and named in asbestos lawsuits has filed for the protection under Chapter 11 bankruptcy.
The Budd Company voluntarily filed its petition for relief on March 31 in the United States Bankruptcy Court for the Northern District of Illinois.
As a result, defense attorney Edward P. Abbot of Hawkins, Parnell, Thackston & Young filed a Notice of Bankruptcy and Automatic Stay of Proceedings in the New York City Asbestos Litigation court, NYCAL, addressing plaintiffs' attorneys who have named The Budd Company, formerly known as Thyssenkrupp Budd Company, as a defendant or third-party defendant.
The April 4 notice explains that according to the Bankruptcy Code, automatic stay is imposed for all pending and future lawsuits against The Budd Company.
"No other or further action may be taken against the debtor without further relief from the bankruptcy court, and no judgment may be entered against the debtor," the notice states.
Directors of The Budd Company filed a unanimous written consent in lieu of a meeting.
"Now, therefore, it is resolved, that in the judgment of the Board of Directors, it is desirable and in the best interests of the Company, its creditors, stockholders and other parties in interest, taken as a whole, that the company file or cause to be filed a voluntary petition for relief under the provisions of Chapter 11 of Title 11 of the United States Bankruptcy Court for the Northern District of Illinois."
The law firm of Proskauer Rose LLP is representing The Budd Company as general bankruptcy counsel.
Dickinson Wright PLLC was employed as special counsel for the limited purpose of pursuing approval of Settlement and further prosecuting and defending against affiliate claims, if necessary, and to take any and all actions to advance to company's rights and obligations, including filings and pleadings.
Judge Jack Schmetterer scheduled a hearing for April 22 on setting bar dates for filing of non-administrative claims and objections to those claims.
From Legal Newsline: Reach Heather Isringhausen Gvillo at email@example.com