WCI Strikes Deal To Create Drywall Claimant Trust

Law360, New York (July 17, 2009, 3:17 PM EDT) -- A bankruptcy judge has approved a disclosure statement for builder WCI Communities Inc.’s amended reorganization plan, which provides for the creation of a trust to repay claimants alleging problems from the installation of defective Chinese-made drywall, primarily using insurance proceeds.

Judge Kevin J. Carey of the U.S. Bankruptcy Court for the District of Delaware on Friday approved the disclosure statement, clearing a major obstacle in the path toward confirmation of a Chapter 11 plan for WCI.

According to the disclosure statement to WCI's second amended reorganization...
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