Adversary Complaint over Coverage Agreements Out of Bankruptcy Court

NEW ORLEANS - A dispute over the indemnity agreements Babcock & Wilcox used to pay asbestos claims is not a core proceeding and does not belong on the same docket as the bankrupt defendant's Chapter 11 matters, a federal court in Louisiana has ruled. In re The Babcock & Wilcox Co., et al., No. 01-1187 (E.D. La.).

In a decision reached July 2, the U.S. District Court for the Eastern District of Louisiana ruled that the declaratory judgment action over coverage-in-place agreements the company had negotiated with Certain Underwriters at Lloyd's is a "creature of state law," and does not …