Insurer has Standing to Object to Kaiser Gypsum Bankruptcy Plan, High Court Rules

WASHINGTON, D.C. — The U.S. Supreme Court has ruled that Truck Insurance Exchange, as the primary insurer of Kaiser Gypsum and Hanson Permanente, has standing to challenge the companies’ reorganization plan as a “party in interest” under 11 U.S.C. § 1109(b).

In a June 6 opinion that reversed a 4th Circuit U.S. Court of Appeals ruling, a unanimous court said, “the fact that Truck’s financial exposure may be directly and adversely affected by a plan is sufficient to give Truck a right to voice its objections.”

In February 2023, the 4th Circuit agreed with the U.S. District Court for …