Ensuring Insurer Standing To Object To Reorganization

Law360, New York (August 31, 2009, 12:00 PM EDT) -- On Aug. 17, 2009, U.S. District Judge Joel A. Pisano issued a landmark opinion in Congoleum Corporation’s Chapter 11 “prepackaged” asbestos bankruptcy.

The decision overturned the bankruptcy court’s February dismissal order, allowing Congoleum to continue its bankruptcy reorganization under Judge Pisano’s direction. Notably, the decision squarely affirmed insurer standing to challenge the confirmation of reorganization plans in asbestos bankruptcies.

Congoleum is a mid-cap flooring manufacturer that has been in bankruptcy for over five years. The company filed a § 524(g) bankruptcy petition on Dec. 21, 2003,...
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