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Pre-Packaged Plan of Inequity

The financial abuse of future claimants in the T H Agriculture & Nutrition 524(g) asbestos bankruptcy

Kirk T. Harley (LSP Group), David C. Christian II (Seyfarth Shaw), Marc C. Scarcella, and Peter R. Kelso
Mealey's Asbestos Bankruptcy Report
November 2011

The events surrounding the TH Agriculture & Nutrition (“THAN”) bankruptcy reorganization, and the resulting asbestos bankruptcy trust, violate the equitable principles of section 524(g) of the US Bankruptcy Code by providing preferential financial treatment to the current class of asbestos voting claims to the financial detriment of future asbestos claimants. Parties in the THAN bankruptcy reorganization manipulated the rules of section 524(g), resulting in current asbestos voting claims receiving a 333% premium above the amount that similarly situated asbestos claims will receive in the future. This paper explores what went wrong in theTHAN bankruptcy, and asks, “why is the problem not being fixed?”

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