In one of the most publicized terms for the U.S. Supreme Court, one June decision has not received the attention it deserves: Truck Insurance Exchange v. Kaiser Gypsum Company Inc. Truck upends decades of Chapter 11 bankruptcy jurisprudence that often relegated a debtor’s insurer to the sidelines, even if the insurer had financial responsibility under the proposed reorganization plan. As long as the reorganization plan was insurance-neutral, the debtor’s insurer was not considered a party in interest under Chapter 11 and lacked a right to be heard.
Originally published in Law360, July 2024.
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