U.S. Bank National Ass'n v. Federal Insurance

MELLOY, Circuit Judge.

U.S. Bank National Association, as trustee for a creditors’ trust (the “Trust”), holds a $56 million stipulated judgment against Paul Yarrick, a former officer of Interstate Bakeries, Inc. (“Interstate”). Interstate has emerged from a voluntary Chapter 11 bankruptcy reorganization. In the bankruptcy proceedings, the Trust obtained the right to bring the action that later resulted in the judgment against Yar-rick. The Trust received this right in exchange for certain concessions, including an agreement to execute only against potentially liable insurers. After the Trust…