Judge Issues Order for Cancer-Only Bar Date in USG Bankruptcy

WILMINGTON, Del. - A federal judge overseeing several asbestos-related bankruptcies in Delaware has called for a procedural mechanism in one of the cases that could effectively give cancer claims priority over all others filed against the debtor. In re: USG Corporation, et al., No. 01-2094 (D. Del., Bankr.).

Noting that cancer claims alone may render debtor USG Corp. insolvent, Judge Alfred M. Wolin set provisions for the bankrupt asbestos defendant to designate an initial bar date exclusively for cancer cases that have been determined by a physician to be asbestos-related.

'With a finite amount of money available to pay claims, …