KFI’s May 28 agenda put a contested protective-order fight before the court, with the debtor seeking Rule 502(d) protection so it can produce Special Committee reports and transmittal emails without triggering broader privilege waiver in the Chapter 11 case or related coverage litigation. The debtor says the materials cover advisor work by AlixPartners, Schulte Roth & Zabel, Bates White, Sullivan & Cromwell, and Hilco between July 2023 and August 2024, including work on Carrier claims, AFFF liabilities, and asset valuations, and that the court had asked what the Special Committee actually considered when approving plan settlements in the protective order motion.
The fight matters because insurers say KFI is selectively disclosing five reports while shielding underlying communications, committee questions, minutes, data, and work product needed to test the good faith and reasonableness of estate-claim settlements embedded in the plan. Admiral, Allstate, GEICO, Hartford, Lexington, National Union, and other insurers framed the request as an unfair “sword and shield” use of privilege in their objection. The May 28 hearing agenda shows the matter went forward after insurer objections, keeping discovery over the plan-supporting settlement record on the critical path.
Certain insurers escalated litigation over KFI’s plan-related discovery, filing disputes against both the Debtor and the Plaintiffs’ Executive Committee. The group led by ACE American argued that mediation does not categorically shield otherwise discoverable evidence in its discovery-dispute letter; a companion filing alleged that the PEC co-leads had not fulfilled agreed discovery obligations in the PEC discovery-dispute letter.
Those matters, along with disputes raised by Zurich, Lexington, National Union, and New York, were placed on the March 6 argument agenda in KFI’s hearing agenda. The fight over discovery scope affects insurers’ and governmental creditors’ ability to test the evidentiary record supporting the proposed AFFF plan and related settlements, keeping confirmation-facing litigation active.
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