Home      Login

Abstract: 

Using J&J as an example in this article, the authors defend J&J’s use of a “divisive merger,” with a bankruptcy filing as the second step, as a proper exercise of the bankruptcy process that promotes the public interest. They begin by describing the mechanics of the divisive merger strategy in detail, using examples. They then turn to divisive mergers as fraudulent transfers, again giving an example. They close by addressing possible jurisdictional splits on several issues, cite proposed federal legislation designed to curtail divisive mergers, and note four other states with divisive merger statutes.

Keywords: Divisive Mergers as Fraudulent Transfers; LTL Management LLC; Johnson & Johnson

Affiliations:  1: ArentFox Schiff LLP; 2: ArentFox Schiff LLP.