Berkshire Insurer Units Oppose Prospect Medical Bankruptcy Plan

Two Berkshire Hathaway Inc. insurance affiliates objected to Prospect Medical Holdings Inc.'s bankruptcy exit plan, saying it infringes on the carriers’ rights under insurance contracts and nonbankruptcy law.

Prospect seeks to improperly treat nonestate assets as part of the bankruptcy estate under the jurisdiction of the US Bankruptcy Court for the Northern District of Texas, National Fire & Marine Insurance Co. and Berkshire Hathaway Specialty Insurance said in a Thursday filing.

The Berkshire insurers’ objection comes after about 30 parties—including individual creditors, other insurers, former employees, and malpractice claimants—objected to Prospect’s plan in filings last week, saying the ...