Johnson & Johnson unit LTL seeks four-month exclusivity extension

By Sarah Lizee

Olympia, Wash., Jan. 13 – Johnson & Johnson subsidiary LTL Management LLC is seeking a four-month extension of its exclusive periods to file and solicit votes on a Chapter 11 plan, according to a motion filed Wednesday with the U.S. Bankruptcy Court for the District of New Jersey.

The company said that since the start of its Chapter 11 case less than four months ago, it has made considerable progress on a variety of issues.

“Despite this progress, this case is still in its early stages,” the company said in its motion.

LTL said that, given the magnitude and complexity of the issues presented by this case, and the absence of any settlement negotiations to date, more time will be needed for the debtor to pursue a resolution of the case and to develop a plan of reorganization.

As a result, the company is seeking to extend the plan filing period through June 13, and the solicitation period through Aug. 10.

The Johnson & Johnson subsidiary said that it is seeking a ruling on a preliminary injunction order and a denial of pending motions to dismiss the case.

“Once those matters are addressed by the court, the debtor intends to focus its efforts on working with representatives of the talc claimants to explore the potential for a consensual plan of reorganization that would, among other things, provide for the creation and funding of a trust to resolve and pay current and future talc-related claims in accordance with trust distribution procedures approved by this court,” the company said.

LTL said that while it is hopeful that the parties will commit to reach a workable resolution as soon as possible for the benefit of present and future claimants, given the size of this case, the complexity of the issues it presents, and the “competing interests” that exist among the parties, consensus on the terms of a plan of reorganization may take time.

“In the interim, the exclusive periods should be extended,” the company said.

A hearing is scheduled for Feb. 2.

Johnson & Johnson is a consumer products company based in New Brunswick, N.J. The LTL Management subsidiary filed Chapter 11 bankruptcy on Oct. 14 under case number 21-30589.

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