AMH Litigation Trust Trustee Brings an Action for a Declaratory Judgment and Permanent Injunction against Insurers of Alta Mesa Resources, Inc.
July 27, 2021, Southern District of Texas – Plaintiff Trustee David Dunn of the AMH Litigation Trust, the successor-in-interest to certain causes of action of Debtor Alta Mesa Holdings, LP (“AMH”), brings an action seeking a declaratory judgment and permanent injunction against the insurers of Alta Mesa Resources, Inc. (“AMR”) and others to ensure that the proceeds of insurance policies issued by the insurers to AMR are preserved and made available to AMH’s creditors rather than depleted by claims brought by AMR’s former investors, for which the insurance policies allegedly exclude coverage.
Through its complaint, the Litigation Trust requests the court to declare that the insurance policies do not provide coverage either for the proxy claims in a Class Action Litigation ( a securities class action brought by the named plaintiffs in In re Alta Mesa Resources, Inc. Securities Litigation, No. 19-cv-00957 (S.D. Tex.)) or for any “wrongful acts” committed before the business combination. The Trust further requests the court to issue a permanent injunction enjoining the insurers and others from using the proceeds from the insurance policies to pay any settlement or judgment in the Class Action Litigation until such time that the Litigation Trust has resolved, through a final non-appealable settlement or judgment, its claims in the Trust Litigation.
The case is In re Alta Mesa Resources, Inc. jointly administered under Case No. 19-35133 in the United States Bankruptcy Court for Southern District of Texas