US, Insurer Object To Petroleum Co.'s Ch. 11 Plan

Law360, New York (April 22, 2011, 11:04 PM EDT) -- The U.S. and Westchester Surplus Lines Insurance Co. objected Friday to provisions in bankrupt Caribbean Petroleum Corp.'s liquidation plan, saying it would place unlawful filing requirements on the government and improperly reassign a liability policy.

The objections could throw a stumbling block in the path of CPC's Chapter 11 plan approval. The company filed for bankruptcy in August, 10 months after explosions at its Bayamon, Puerto Rico, facility resulted in more than $455 million in tort claims.

Under the proposed liquidation plan, the Internal Revenue Service...
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