5th Circuit: Doctors Of Bankrupt Medical Group Have Valid Insurance Claim

NEW ORLEANS - A panel of the Fifth Circuit U.S. Court of Appeals on March 9 ruled that a lawsuit against an insurance company that was brought by two doctors whose medical practice filed for Chapter 11 bankruptcy was valid despite statute of limitations objections by the insurer (Aetna Life Insurance...

MF Global Insurer Seeks Approval To Pay Claims Related To Bankruptcy

NEW YORK - The MF Global Assurance Co. Ltd., an affiliate of bankrupt MF Global Holdings Ltd. (MFGH), on March 23 filed a brief in the U.S. Bankruptcy Court for the Southern of New York supporting an order that it may satisfy its obligations under the liability policies it issued to MFGH (In Re: MF Global...

Bankrupt Land America Proposes New $37.85M Deal With Insurers

RICHMOND, Va. - Bankrupt Land America Financial Group Inc. on March 30 moved in the U.S. Bankruptcy Court for the Eastern District of Virginia for approval of a modified settlement agreement of $37.85 million with Certain Underwriters of Lloyd's, London, contending that initial objections to the...

Judge Orders Accounting Firm's Insurer To Pay $10M To Bankruptcy Estate

FORT LAUDERDALE, Fla. - A Florida federal bankruptcy judge on April 9 granted a motion by the Chapter 11 trustee of the law firm once headed by convicted Ponzi scheme operator Scott Rothstein to compel the insurer of an accounting firm, which allegedly enabled the Ponzi scheme, to pay $10 million to...

Bankruptcy Judge: Insurance Carriers May Pay Defense Costs In MF Global Case

NEW YORK - The federal bankruptcy judge presiding over the Chapter 11 proceeding of MF Global Holdings Ltd. (MFGH) in the U.S. Bankruptcy Court for the Southern District of New York on April 10 ruled that the automatic stay could be lifted in the case to allow the payment of certain defense costs using...

Alternative Dispute Resolution Proposal By Hostess Should Be Changed, Insurers Say

NEW YORK - An insurance company and its affiliate on May 24 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York objecting to a motion by bankrupt Hostess Brands Inc. that seeks to use alternative dispute resolution (ADR) as a means of resolving various claims in its Chapter...

Proponents Of Pittsburgh Corning Reorganization Plan Object To More Discovery

PITTSBURGH - Proponents of the Chapter 11 reorganization plan of Pittsburgh Corning Corp. (PCC) on June 4 filed a brief in the U.S. Bankruptcy Court for the Western District of Pennsylvania objecting to a motion filed by two insurance companies that seek a case management order (CMO) to conduct discovery...

Insurer Objects To Filene's Chapter 11 Reorganization Plan, Says Rights Affected

WILMINGTON, Del. - Liberty Mutual Insurance Co., a creditor in the Chapter 11 bankruptcy of Filene's Basement LLC, on Aug. 22 filed a brief in the U.S. Bankruptcy Court for the District of Delaware, objecting to Filene's second amended plan of reorganization (In Re: Filene's Basement LLC...

Supreme Court Declines To Hear Case Involving Arbitration Issues In Bankruptcy

WASHINGTON, D.C. - The U.S. Supreme Court on Oct. 1 denied certiorari to an insurer that had asked the court to hear its claim that arbitration agreements should be honored in bankruptcy proceedings (Continental Insurance Company v. Thorpe Insulation Company, No. 11-1310, Chapter 11, U.S. Sup.). Follow...

Federal Bankruptcy Judge Dismisses Breach Of Contract, Subrogation Case

WILMINGTON, Del. - A bankruptcy judge in Delaware on Oct. 4 dismissed an insurance claims breach of contract case, saying the court lacked jurisdiction to hear the dispute ( In re Washington Mutual Inc., et al., No. 08-12229, D. Del. Bkcy.; 2012 Bankr. LEXIS 4673).

Insurer Objects To New Page Reorganization Plan, Says Its Rights Not Protected

WILMINGTON, Del. - Liberty Mutual Insurance Co. filed a brief in the U.S. Bankruptcy Court for the District of Delaware on Dec. 6 objecting to the reorganization plan filed by New Page Corp. on grounds that the plan does not adequately protect its interests (In Re: New Page Corporation, No. 11-12804...

Federal Judge: Settlement Between Debtor, Insurance Carrier Proper

CHICAGO - A federal judge in Illinois on Jan. 10 ruled that an insurance settlement between a debtor and one of its insurers related to asbestos coverage was proper despite a separate insurer's contention that the settlement would increase its own liability related to asbestos claims Columbia Casualty...

Hostess, Insurer Agree To Terms For Use Of Cash Collateral To Pay Deductible

NEW YORK - Bankrupt Hostess Brands Inc. and ACE American Insurance Co. on Jan. 10 reached an agreement pertaining to a dispute concerning Hostess' use of cash collateral in the bankruptcy proceeding whereby the parties agree that ACE's obligation has been paid from the cash collateral since Nov...

Bankruptcy Judge: Insurer's $378M Fraud Case Against JPMorgan Stayed

BIRMINGHAM, Ala. - The federal bankruptcy judge presiding over the Chapter 9 proceeding of Jefferson County, Ala., on April 15 ruled that an insurer who alleges that it was fraudulently induced to provide $378 million in insurance coverage could not pursue its lawsuit because of the automatic stay (In...

Dewey & LeBoeuf Executives: $19.5M Deal With Insurer Lacks 'Supportable Basis'

NEW YORK - Two former executives with bankrupt law firm Dewey & LeBoeuf on May 2 filed a brief objecting to the more than $19.5 million settlement reached among the Dewey & LeBoeuf Liquidation Trust, XL Specialty Insurance Co. and Steven H. Davis, on grounds that the liquidating trustee has failed...

Insurer: U.S. High Court Must Vacate; Bankruptcy Courts Lack Judicial Power

WASHINGTON, D.C. - In a brief made available on Sept. 16, the Executive Benefits Insurance Agency (EBIA) argues that the U.S. Supreme Court should vacate a ruling by the Ninth Circuit U.S. Court of Appeals because Article III of the U.S. Constitution does not permit the exercise of the judicial power...

Creditor Of Solar Energy Company: Trustee's Deal With Insurer Should Be Denied

WILMINGTON, Del. - A creditor of bankrupt alternative energy company Abound Solar Manufacturing LLC on Jan. 22 moved in the U.S. Bankruptcy Court for the District of Delaware to oppose the trustee's motion to approve a settlement with the company's insurer for $2.2 million that would resolve...