Interstate Bakeries' Insurers Dodge $56M Payout

Law360, New York (October 5, 2010, 6:49 PM EDT) -- Six insurers have escaped paying the $56 million settlement of a securities action against an executive of formerly bankrupt International Bakeries Co., persuading a judge that because the receiver in the company's bankruptcy agreed to pursue them and not the executive, there was no loss for them to cover.

Judge Howard Sachs of the U.S. District Court for the Western District of Missouri ruled Monday that the U.S. Bank National Association, acting as receiver for creditors in Interstate Bakeries' bankruptcy, could not collect the settlement it...
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