Chartis Decries Enviro Settlement Under Tronox Plan

Law360, New York (November 15, 2010, 4:38 PM EST) -- American International Group Inc. unit Chartis Specialty Insurance Co. has cried foul over an environmental settlement in Tronox Inc.'s proposed reorganization plan, warning that it believes the agreement invalidates all remaining coverage under its policies with the bankrupt chemical maker.

The proposed settlement illegally settles environmental claims and assigns three insurance policies to a trust against the insurer's will, according to an objection filed Friday on behalf of Chartis by Edward P. Krugman of Cahill Gordon & Reindel LLP.

The purported assignments are actually assignments of...
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