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In a recent decision of the United States Bankruptcy Court for the District of Delaware, Jeld-Wen, Inc. v. Van Brunt, Adv. Proc. No. 07-51602 (Bankr. D. Del. June 9, 2008), the court held that a claim for injury allegedly due to exposure to asbestos was not discharged, survived the company’s exit from Chapter 11, and could be asserted against the successor company in a State court action under the circumstances presented: (i) under applicable governing non-bankruptcy law, such a claim does not arise until  injury manifests; (ii) the injury was not discovered until after the company had emerged from bankruptcy; (iii) the company’s confirmed plan of reorganization did not include a channeling injunction accommodating future asbestos related claims; and (iv) the published notice of the plan of reorganization did not provide notice to potential future asbestos claimants that their claims would be discharged by confirmation of the plan. …
Read More Bankruptcy Court Rules That Asbestos Claims Were Not Discharged By Plan of Reorganization

The Massachusetts Appeals Court recently ruled that an Insured’s willful, unexcused refusal to submit to an examination under oath violated the cooperation clause in its policy resulting in a material breach on the part of the Insured. …
Read More Massachusetts Appeals Court Rules that Insured Cannot Cure Material Breach of Policy Based on its Failure to Cooperate

The Mesothelioma Act (Northern Ireland) 2008 (the Act) was given Royal Assent on 2 July 2008.  The Act allows victims with diffuse mesothelioma or their dependants to claim a lump sum payment from the government. This new Act allows even those victims who did not have workplace exposure to asbestos to claim a payment under the Act. …
Read More UK: Legislation Extends Government Compensation for Mesothelioma Victims

Brocade Communications Systems, Inc. announced recently that it plans on pursuing claims for racketeering against 10 former Brocade officers and directors.  As previously reported on this blog, Brocade and its directors and officers have been the subjects of civil and criminal litigation for allegedly improper stock option backdating practices (click here). 

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Read More Brocade to Pursue Racketeering Claims Against Ten Former Officers and Directors

The two consultation papers published by the European Commission (Commission) on 31 July 2008 result from the perception that CRAs contributed to current market turmoil by underestimating the credit risk of structured instruments in which sub prime mortgages were embedded. Many investors relied too heavily on the generally favourable ratings given by CRAs to these products instead of assessing the risk characteristics themselves and assessing performance of the underlying assets. …
Read More EU: European Commission Publishes Two Consultation Papers on Regulation of Credit Rating Agencies (CRAs)

On July 29, XL Capital (“XL”) announced plans to raise $2.5 billion through an offering of ordinary shares and equity security units, the proceeds of which were to be used to recapitalize Syncora Holdings, Ltd. (formerly known as Security Capital Assurance) (“Syncora”), a bond insurance company that XL spun off in 2006. …
Read More NY Insurance Department Announces Successful Closing of Agreement to Recapitalize Syncora Holdings, Ltd.

With the 2008 Olympic Games set to begin in Beijing, China on Friday, August 8, the International Olympic Committee (“IOC”) has opted to purchase cancellation and abandonment insurance with policy limits of $415 million, more than double the policy limits for the last two Olympic Games combined. 

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Read More Beijing Olympics Protected With Record High-Limit Cancellation Insurance Policies