SAN FRANCISCO – Because Thorpe Insulation Co.’s Chapter 11 plan of reorganization could harm insurance companies, the plan is not “insurance neutral” and, therefore, the insurers have standing to object to it, the Ninth Circuit U.S. Court of Appeals held Jan. 24 in reversing approval of the plan and remanding the case so the insurers’ arguments can be heard (Motor Vehicle Casualty Company, et al. v. Thorpe Insulation Company, et al.[In The Matter of Thorpe Insulation Company] and National Fire Insurance Company of Hartford, et al. v. Thorpe Insulation Company, et al. [In the Matter of Thorpe Insulation Company], Nos. 10-56543 and 10-56622, 9th Cir.; 2012 U.S. App. LEXIS 1272).
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