Zurich American Insurance v. Lexington Coal Co. (In Re HNRC Dissolution Co.)

OPINION

Zurich American Insurance Co. (“Zurich”) provided insurance coverage to Horizon Natural Resources Co., et aL, (“the Debtors”) during the pendency of the Debtors’ Chapter 11 bankruptcy proceedings. The policies issued to the Debtors were “deductible policies,” meaning that Zurich would pay the entirety of any claims made and would later seek reimbursement from the Debtors for the deductible portion. After confirmation of the Debtors’ plans, but before the expiration of the date set for the filing of administrative expense claims, Zurich filed an administrative expense claim. Zurich’s…