Scott Davis and John Cruciani will present, "The 'Texas Two Step' Bankruptcy Strategy," at the AIRROC Summer Membership Meeting on Wednesday, July 21, 2022.
A Texas Two Step Bankruptcy is a controversial legal maneuver that can be used to manage a company’s exposure to potential legal claims. In carrying out a Texas Two Step Bankruptcy, a company first creates a new legal entity into which it transfers any tort liabilities, while transferring a relatively small portion of the original company’s assets. The newly created corporation then files for bankruptcy, effectively shielding the original company from the cost of the tort liabilities. J&J recently attempted this with their talc liabilities. Our panel will discuss how it works, the Texas statutes that companies are relying on, provide an update on the ongoing cases, and discuss implications for insurers.
For more information, visit the event website.