Celotex Corp. v. AIU Insurance Co. (In Re Celotex Corp.)

MEMORANDUM OPINION

THOMAS E. BAYNES, Jr., Bankruptcy Judge.

I. INTRODUCTION

This cause came on for final evidentiary hearing upon the adversary proceeding, filed by Celotex Corporation and Carey Canada, Inc., (collectively referred to hereinafter as Debtor). Debtor seeks a declaratory judgment as to the insurance coverage under numerous insurance policies purchased by Debtor for: 1) asbestos property damage; 1 2) asbestos bodily injury; or 3) environmental damage.

On January 13,1993, this Court entered an order severing this adversary proceeding into four separate phases. Phase one (“Phase I”),…