http://www.northtexasseclawyer.com/2024/02/the-divisive-merger-powerful-tool-in.html Web1 Aug 2024 · In carrying out a Texas Two-Step Bankruptcy, a company splits into two or more companies via a divisive merger whereby forming a new legal entity into which it transfers any tort liabilities, while transferring a relatively small portion of the original company’s assets.

The “Texas Two-Step” Bankruptcy Strategy - AIRROC Update

WebBoth Texas and Delaware have divisive merger statutes. The Texas statute, which was the focus of the hearing, was enacted in 1989 with the stated intention of making merger … Web7 Apr 2024 · In Texas, the “Two-Step” allows J&J and other companies facing mass tort litigation to protect vital assets and transfer the liabilities to a newly-created entity, all of … pa in philly

The Texas Two-Step is Alive and Well Cowles Thompson

WebBoth Texas and Delaware have divisive merger statutes. The Texas statute, which was the focus of the hearing, was enacted in 1989 with the stated intention of making merger transactions more flexible. The Texas Two-Step is a recent development, popularized within the last five years.1 Companies have used the Texas Two-Step when they have ... WebIn the first step, the parent company undergoes a Texas divisive merger, which allows companies to split off their liabilities from their assets. In the second step, the newly … WebThe Texas two-step legal strategy, also referred to as a Texas divisive merger, is a legal tool used by businesses involved in substantial litigation to settle their tort liabilities through … submit wsib forms