Inside Johnson & Johnson’s bankruptcy two-step
Behind the Money
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The Texas Two Step Mechanism
The company warned that the cost of the litigation could become unsust able, and therefore it started to look for different ways that it could deal with it. This whole mechanism sort of relies on this 19 89 statute that was passed by the texas state legislature on devisive mergers. Jamie says the law was originally passed as a way to make it easier to do corporate spin offs but now, years later, it's being used as step one in this texas two step move.
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