3rd Circ. Lets Federal-Mogul Move Policies To Asbestos Trust

Law360, New York (May 1, 2012, 6:34 PM EDT) -- The Third Circuit on Tuesday approved bankrupt auto parts maker Federal-Mogul Global Inc.'s decision to transfer some of its insurance policies to an asbestos trust, ruling that bankruptcy law trumped the policies' anti-assignment provisions.

A three-judge panel found parts of Section 1123 of the Bankruptcy Code that deal with transfers of property from the bankruptcy estate to other "entities" clearly preempt language in Federal-Mogul's prepetition insurance policies that said they couldn't be transferred without the consent of the slew of insurers involved in the case....
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