Insurers Can Challenge Thorpe Reorganization: 9th Circ.

Law360, New York (January 24, 2012, 7:29 PM EST) -- The Ninth Circuit on Tuesday said a group of insurance companies that had not yet settled asbestos claims with Thorpe Insulation Co. should be able to challenge its reorganization plan, overturning a decision that they lacked standing and that the matter was moot because the plan had already gone into effect.

A three-judge panel reversed and remanded the California federal court's ruling, saying the insurance companies had a right to challenge Thorpe's reorganization plan in bankruptcy court because the plan — which established a trust to...
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