High Court Clears Insurer to Fight Asbestos Bankruptcy Deal (2)

An insurer on the hook to pay thousands of asbestos injury claims has standing to challenge a bankrupt wallboard manufacturer’s restructuring plan, the US Supreme Court said.

Truck Insurance Exchange asked the high court to determine that it has standing to challenge Kaiser Gypsum Co.'s Chapter 11 plan, saying it’s entitled to weigh in because it has a significant financial stake in the deal. The plan requires Truck to cover many of the roughly 14,000 claims Kaiser faced at up to $500,000 per claim.

The court’s decision was unanimous, though Justice Samuel Alito took no part in it.

Insurers ...