Gordon & Spero Procure Channeling Injunction Protecting Insurer Via Buy Back Of Policy Under Chapter 11 Plan

Stuart Gordon and Mathew Spero, members of the Firm’s Bankruptcy Department were successful in obtaining an order approving a settlement agreement negotiated between the Firm’s client, an insurer, and an order of the Catholic Church which sought bankruptcy protection under Chapter 11 to resolve sexual abuse claims.  Despite daunting insurance and bankruptcy law issues, Stu and Matt relied on their extensive experience in these types of bankruptcy disputes to obtain a settlement approving the buy back of the debtor’s insurance policies by the insurer, allowing the Firm’s client to become a “settling insurer” under the confirmed plan of reorganization and receive a full release and the protection of a channeling injunction.  They also successfully negotiated a resolution of objections that threatened the approval of the settlement.