The Third Circuit reversed in part and reinstated the bankruptcy court’s plan-interpretation ruling that blocks the liquidating trustee from asserting claims against Allison Marine Holdings LLC. The dispute matters because AMH was JAB’s sole member and manager, and the trustee’s post-confirmation recovery strategy turned on whether AMH could be treated as an “Insured Person” subject to suit under the liquidation plan. The bankruptcy court had ruled in September 2023 that the trust could pursue claims above insurance coverage for Class 3 creditors, but was not authorized to sue AMH under the plan Order Regarding Trust’s Motion Seeking Interpretation of Plan.

The July 15 opinion, published by Hallapproved, rejects the district court’s contrary reading and restores the bankruptcy court’s AMH ruling. For professionals tracking creditor recoveries, the practical point is narrower litigation optionality: the trustee keeps authority to pursue non-AMH claims above insurance proceeds, but the appellate ruling preserves AMH’s protection from that plan-based trust litigation path.