Claimants' Committees Can Intervene in Babcock & Wilcox Insurance Squabble

NEW ORLEANS - A U.S. District judge in Louisiana has granted a motion by committees in the Babcock & Wilcox bankruptcy proceedings to intervene in an adversary complaint that seeks to void a coverage-in-place agreement worth nearly $900 million in insurance coverage. In Re The Babcock and Wilcox Co., et al., No. 01-912 c/w 01-1187 (E.D. La.).

Judge Sarah S. Vance said Sept. 13 that allowing the current and future claimants' committees of the B&W bankruptcy to intervene in the lawsuit will force the adversary to face a 'more vigorous opponent' as the company's reorganization plans proceed.

The adversary complaint …