U.S. Bankruptcy Court Denies Motion to Dismiss Muralo Chapter 11 Case

NEWARK, N.J. - A U.S. Bankruptcy Court had denied a motion filed in the Muralo Company Chapter 11 case by the Official Committee of Asbestos Creditors, who alleged that the bankruptcy filing was made in bad faith. In re: The Muralo Company, et. al., NO. 03-26723 (D. N.J., Bankr.).

U.S. Bankruptcy Judge Morris Stern ruled Dec. 4 that recent Chapter 11 filings made by the Muralo Company and its affiliate, Norton & Son of California, were not made in bad faith because the company was in 'readily understandable dire straits,' seeing as Muralo's everyday business operations were disrupted by …