Bankrupt Dean Foods Must Keep Casualty Insurance, Watchdog Says

July 21, 2020, 5:57 PM

Dean Foods Co. shouldn’t be allowed to forgo property casualty insurance coverage as it winds down its bankruptcy, the Justice Department’s bankruptcy watchdog says.

“Maintaining appropriate casualty insurance is a fundamental aspect of a debtor-in-possession’s fiduciary duty,” the U.S. Trustee said in an objection filed Monday with the U.S. Bankruptcy Court for the Southern District of Texas. “Without these protections, bankruptcy estate property is at risk of loss in the event of a casualty.”

The milk producer, which filed for bankruptcy in November 2019 under the name Southern Foods Group LLC, asked the court in June for permission to waive...

To read the full article log in.

Learn more about a Bloomberg Law subscription.