In a rebuke of a common law doctrine that denied insurer standing in chapter 11, the U.S. Supreme Court ruled unanimously that insurers with financial responsibility for claims asserted in bankruptcy are parties in interest...more
In rejecting an insurer’s attempt to block confirmation of its insured’s bankruptcy plan, the Fourth Circuit found that an insurer may not interject itself into plan negotiations by invoking the duty to cooperate, nor does...more
4/10/2023
/ Appeals ,
Article III ,
Bankruptcy Code ,
Bankruptcy Court ,
Chapter 11 ,
Commercial General Liability Policies ,
Duty to Cooperate ,
Financial Services Industry ,
Insolvency ,
Insurance Litigation ,
Insureds ,
Liability Insurance ,
Restructuring
A decision by the Third Circuit Court of Appeals serves as a stark reminder that the sale (assignment) of a contract in bankruptcy does not always require full payment of the non-debtor counterparty’s claim.
Debtors must...more