Kaiser Gypsum’s Asbestos Bankruptcy Plan Defeats Insurer Appeal

An insurance company potentially on the hook for millions of dollars in asbestos-related injury claims never had the right to challenge Kaiser Gypsum Co. Inc.'s bankruptcy plan because the plan did not change the insurer’s rights or responsibilities, an appeals court ruled.

Truck Insurance Exchange’s rights and obligations were left untouched by Kaiser Gypsum’s Chapter 11 plan, meaning it had no standing to oppose the plan in bankruptcy court, the US Court of Appeals for the Fourth Circuit ruled Tuesday. The Fourth Circuit’s ruling affirmed federal district and bankruptcy courts’ prior decisions rejecting Truck’s efforts to prevent Kaiser Gypsum’s plan ...