Fireman's Fund Insurance Co. v. Onebeacon Insurance Co. (In re Plant Insulation Co.)
- Summarized by Richard Corbi , Otterbourg P.C.
- 12 years 4 months ago
- Citation:
- In re Plant Insulation Co., --F.3d--, 2013 WL 5779568 (Oct. 28, 2013 9th Cir.)
- Tag(s):
-
- Ruling:
- The Ninth Circuit Court of Appeals held that because the Debtors' plan of reorganization did not call for the Trust to control the reorganized debtor either after confirmation or at any point where control would benefit the Trust, the plan did not comply with section 524(g) of the Bankruptcy Code.
- Procedural context:
- The Ninth Circuit Court of Appeals REVERSED the District Court order confirming the Debtors' plan of reorganization.
- Facts:
- Plant Insulation Co ("Plant" or the "Debtors") filed for bankruptcy on May 20, 2009 with the meaningful assets consisting of its insurance policies. The Debtors' proposed plan comprised of funds from settling insurers in the amount of $131.5 million in cash. The Trust would own the equity in the reorganized debtor. However, the equity interest in the reorganized debtor that the trust would own is not granted to the trust as part of the plan, but rather the Trust must purchase the interest.
- Judge(s):
- O'Scannlain
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