• Third Circuit Rejects Plan of Reorganization in Combustion Engineering's Pre-Packaged Bankruptcy
  • December 17, 2004 | Authors: James A. Pardo; Mark M. Maloney; William Austin Jowers; George B. South
  • Law Firms: King & Spalding LLP - Atlanta Office; King & Spalding LLP - New York Office
  • On December 2, the U.S. Court of Appeals for the Third Circuit issued a 136-page opinion that, by a 3-0 vote, vacated the order of the District Court of Delaware approving the Chapter 11 plan of reorganization of Combustion Engineering, Inc. ("Combustion"). The Court rejected the Combustion plan because it sought to enjoin claims against certain non-bankrupt affiliates of Combustion for their own asbestos-related liabilities.