The U.S. Supreme Court is expected to hear arguments Tuesday on whether Truck Insurance Exchange retains standing to oppose the proposed reorganization plan of two bankrupt manufacturers facing a bevy of underlying asbestos injury claims, after the Fourth Circuit blocked Truck's opposition since the plan was "insurance neutral." ...

The dispute centers on Section 1109(b) of the Bankruptcy Code, which generally allows a "party in interest," such as a creditor, to appear and "be heard on any issue" in a Chapter 11 bankruptcy proceeding. Once permitted, a party in interest is also allowed to propose modifications to a reorganization plan or object to its confirmation. But in February 2023, a Fourth Circuit three-judge panel unanimously affirmed that Truck could not block the proposed reorganization plan of the two debtor manufacturers — Kaiser Gypsum Co. Inc. and Hanson Permanente Cement Inc. — under the so-called insurance neutrality doctrine. . .

Robert M. Horkovich of Anderson Kill PC is special counsel to the [ Official Committee of Asbestos Personal Injury Claimants ] and the Future Claimants' Representative.

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