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Bankruptcy – Asbestos – Insurance & Trust Fund – Insurer’s Standing

The bankruptcy-debtor formerly produced asbestos-containing products. Its commercial general liability insurer seeks relief from the debtor’s bankruptcy plan because, under the plan, claims under the insurer’s policy do not get the same anti-fraud screening protection that uninsured claims will get before being paid from the debtor’s trust fund. However, if the debtor had not filed bankruptcy, the insurer would not have such screening, so it lacks standing to challenge the bankruptcy plan as a party in interest under 11 U.S.C. § 1109(b).

We affirm the district court’s approval of the bankruptcy plan.

The insurer is also a creditor, but its unsecured claim will be paid in full under the bankruptcy plan. The insurer has alleged no injury in fact as a creditor which would give it Article III standing to object to aspects of a reorganization plan that in no way relates to its status as a creditor.

Truck Insurance Exchange v. Kaiser Gypsum Co. (Lawyers Weekly No. 001-016-23, 25 pp.) (Steven Agee, J.) No. 21-1858. Appealed from USDC at Charlotte, N.C. (Graham Mullen, S.J.) Allyson Newton Ho, Michael Rosenthal, Michael Gocksch, David Casazza, Robert Krakow, Russell Falconer, Elizabeth Kiernan, Matthew Bouslog, Michael Martinez and Scott Hoyt for appellant; Kevin Marshal, Kevin Maclay, Edwin Harron, Todd Phillips, James Wehner, Sara Higgins, Raymond Owens, James Patton, Sharon Zieg, Sara Beth Kohut, Felton Parrish, John Spencer, Robert Horkovich, Gregory Gordon, Amanda Rush, Daniel Villalba, Paul Green, Ross Fulton, John Miller and Mark Nebrig for appellees. 4th Cir.

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