Insurers Off The Hook In Congoleum Settlement

Law360, New York (May 22, 2007, 12:00 AM EDT) -- In a decision that could have far-reaching implications for the bankruptcy world, a New Jersey judge has ruled that Congoleum’s insurers are not required to fund the global asbestos settlement at the heart of the flooring manufacturer’s bankruptcy plan.

On Friday, the Superior Court of New Jersey Law Division Middlesex County ruled in favor of the insurers, finding that the deal failed both the good faith and reasonableness test after a seventh month trial.

“The court concludes that the claimant agreement is an unreasonable agreement, not...
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