Court Appoints Outside Overseer for A. H. Robins

A former bankruptcy court judge from Utah was appointed Wednesday to oversee A. H. Robins Co., which has sought protection from creditors because of a flood of damage claims filed by Dalkon Shield users.

The appointment of former U.S. Bankruptcy Judge Ralph R. Mabey of Salt Lake City was approved by U.S. District Judge Robert R. Merhige, who is handling the company’s bankruptcy proceeding.

Mabey, 42, served as a bankruptcy judge in Salt Lake from 1979 to 1983 and is the senior bankruptcy partner in the law firm of LeBoeuf, Lamb, Leiby & McRae, which has 11 offices nationally.

Robins filed for protection under Chapter 11 of the U.S. Bankruptcy Code a year ago in the face of thousands of claims from women who said they were injured by using the intrauterine birth control device. To date, more than 320,000 claims have been filed against Robins by women who used the IUD, which was marketed by the company in the early 1970s.

Merhige, who found the company in contempt in June for making unauthorized payments of $7 million after its Chapter 11 filing, ordered the selection last week of someone to monitor the company’s operations.

Robins, which has denied intentional wrongdoing in making the payments, said last week that it would cooperate fully with the examiner.

Merhige said the examiner will review Robins’ financial affairs, keep an eye on the progress of negotiations for a reorganization plan, interview employees and evaluate consulting contracts.