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In re SGL Carbon Corp.
United States Court of Appeals for the Third Circuit
200 F.3d 154 (1999)
A government investigation into price-fixing led to several antitrust lawsuits against SGL Carbon Corporation (defendant), with various plaintiffs obtaining judgments against the company. SGL Carbon then filed a voluntary petition under Chapter 11 of the United States Bankruptcy Code. SGL Carbon made no secret of the fact that it was financially healthy at the time of the filing. Instead, SGL Carbon sought to avoid excessive litigation and obtain a more expeditious resolution of the existing claims against it. The official committee of unsecured creditors (the committee) (plaintiff) moved to dismiss SGL Carbon’s bankruptcy petition in federal district court on grounds of bad faith. The court denied the motion. The committee appealed. The United States Court of Appeals for the Third Circuit granted certiorari.
Rule of Law
Holding and Reasoning (Scirica, J.)
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