Asbestos defendants who file for reorganization under the U.S. Bankruptcy Code and seek to establish a personal injury trust for the payment of claims may transfer their liability insurance recovery rights to the trust even if the insurance policies include provisions barring the transfer of such rights, the U.S. Court of Appeals for the Third Circuit has ruled in a precedential opinion. The court held, in In re Federal-Mogul Global, that the plain language of a U.S. bankruptcy law statute, 11 U.S.C. 1123(a)(5)(b), permits the transfer of estate property to the trust “notwithstanding any otherwise applicable nonbankruptcy law” and pre-empts any anti-assignment provision within the individual insurance policies.