How To Handle D&O Coverage In A Bankrupt Co.

Law360, New York (October 22, 2013, 12:53 PM ET) -- When a company enters bankruptcy, the insurance coverage available under directors and officers insurance policies becomes a critical asset that directors, officers and creditors fight over. Specifically, creditors want to use the D&O policies as an asset of the estate to maximize recovery for their claims. Conversely, directors and officers want to use the D&O policies to defend and resolve claims asserted against them in the bankruptcy.

The inherent tension between these parties is typically resolved by a “priority of payments” provision contained in most D&O...
To view the full article, take a free trial now.
Try Law360 for free for seven days
Already a subscriber? Click here to login

Already have access?

  1. Forgot your password?
  2. Sign In

Get instant access to the one-stop news source for business lawyers

Required