Kaiser Asbestos Trust Reaffirmed After High Court Ruling (2)

Kaiser Gypsum Co.'s multimillion-dollar asbestos injury trust was proposed in good faith and meets US bankruptcy code requirements, a federal appeals court ruled, keeping Truck Insurance Exchange on the hook for extensive claim coverage.

The ruling Tuesday by the US Court of Appeals for the Fourth Circuit keeps intact a Chapter 11 plan that Truck successfully challenged all the way to the US Supreme Court. Although Truck won standing to fight approval of the bankruptcy trust agreement, the insurer’s objections are still overruled on the merits, the appeals court said.

The Supreme Court last year ordered the Fourth Circuit to ...