We represent the former parent of a bankrupt, former subsidiary, in connection with disputes with the former subsidiary's general liability insurance carrier regarding whether or not our client must assume responsibility for paying the $5 million self-insured retention regarding civil liability claims against the former subsidiary that had been discharged by as a result the former subsidiary's Chapter XI bankruptcy. In accordance with a separate settlement between the carrier and the subsidiary, the carrier assumed the defense of the underlying claims, agreeing in effect with the claimants that the bankruptcy of the insured subsidiary had not discharged the carrier's obligation to pay insured claims, even though 100% of the first $5 million of very claim was self-insured by the bankrupt company. The carrier then took the position that our client, also a named insured under the policies insuring the former subsidiary, had agreed in a separate Payment Agreement effectively to guarantee the obligations of the subsidiary to pay the SIR. When our client refused to reimburse the costs incurred by the carrier in defending the pre-bankruptcy claims against the former subsidiary, the carrier drew down a letter of credit place by our client to obtain reimbursement of the carrier's costs and then successfully moved to compel arbitration of the Payment Agreement dispute. The arbitration is pending.

Experience Center

Match our Experience to Your Needs

Experience Highlights

International reduction in force by a multinational beverage company
Represented a multinational beverage company in developing strategy and coordinating the work of foreign counsel for a global reduction in force more
Debtor representation in Chapter 11 cases for Vista Eyecare, Inc.
Represented Vista Eyecare, Inc., a vision care retailer group, as debtors in Chapter 11 cases filed in the United States Bankruptcy Court for the more
Real estate finance, construction loan for a consortium
Advising a consortium on construction financing, procured from international bank(s) for a landmark development in the city centre of Stockholm. more
China expansion for one of the world's leading providers of lighting fixtures
Represented one of the world's leading providers of lighting fixtures and related products and services in structuring its expanding operations in more