The U.S. Supreme Court is considering whether to give insurers unrestricted rights to object to approved Chapter 11 bankruptcy reorganization plans in Truck Insurance Exchange v. Kaiser Gypsum. Sheri Pastor, Chair of McCarter’s Insurance Recovery Practice, spoke with Business Insurance about the case and its importance to policyholders, given the ongoing debate in recent mass tort bankruptcy cases about insurers’ role. She said one concern in giving insurers the ability to object to a proposed reorganization plan that is insurance neutral is that insurers benefit from “delaying and derailing the process” which “is contrary to the important function of moving the bankruptcy forward and approving it.”
3.26.2024