The court of appeals reversed a district court judgment and remanded the action for further proceedings. The court held that certain insurers had standing to challenge the reorganization plan of debtors facing substantial asbestos-related liability where the plan was not insurance neutral because it could have a substantial economic impact on the insurers.
Thorpe Insulation Company was the subject of thousands of asbestos-related claims based on its distribution, installation, and repair of asbestos insulation products for over twenty years. In 2000, Thorpe incorporated Pacific Insulation Company as a wholly-owned subsidiary. Thorpe sold its remaining assets to Farwest Insulation Contracting in 2004. Both Pacific and Farwest were parties to asbestos-related lawsuits, as well.
