Calif. Court Rejects Insurers’ Challenges to Asbestos Defendant’s Bankruptcy Reorganization Plan

SAN FRANCISCO –– A California federal court has rejected objections raised by insurers to Plant Insulation Co.’s bankruptcy reorganization plan, finding that the amended plan satisfied control and feasibility requirements of the Bankruptcy Code.

In the Aug. 18 opinion, the U.S. District Court for the Northern District of California wrote that the statute pertaining to control “does not require that the trust retain an unfettered right to sell its shares in the organized debtor.”

Plant Insulation Company filed for Chapter 11 bankruptcy under the weight of asbestos claims filed against the company for its alleged sale, installation, repair and distribution …