By Hilary Russ
A Texas bankruptcy judge has found that a directors and officers liability insurer was wrong to refuse a reasonable $4.65 million settlement demand from the trustee overseeing the wind-down of former cryptocurrency data miner Compute North Holdings, but that the court can’t force the carrier to accept it.
U.S. Bankruptcy Judge Marvin Isgur said Monday in an opinion that Relm Insurance Ltd., a specialty insurance carrier for emerging technologies, wrongfully refused to accept the settlement demand from Tribolet Advisors LLC, which is serving as the plan administrator and litigation trustee for what remains of Compute North’s estate.
However, he also determined that the liability on the insurer applies after either a settlement or a judgment, neither of which has yet occurred in Tribolet’s adversary case against Relm, meaning the court cannot compel Relm to agree to the settlement demand.
Click here to read the full article.