Imerys Talc America and Related Companies File Voluntary Chapter 11 Petitions
The Chapter 11 process will reportedly allow the filing companies the time and protection to negotiate a global agreement with creditors, primarily representatives of current and future claimants in cosmetic talc-related litigation, while defining a path forward for the impacted talc businesses.
Imerys Talc America Inc., along with Imerys Talc Vermont Inc. and Imerys Talc Canada Inc., recently announced that they have made a determination to initiate voluntary Chapter 11 cases in Delaware. The filing companies reportedly reached this decision after evaluating a range of strategies to safeguard their long-term business interests and address their historic talc-related liabilities in the U.S.
The Chapter 11 process will reportedly allow the filing companies the time and protection to negotiate a global agreement with creditors, primarily representatives of current and future claimants in cosmetic talc-related litigation, while defining a path forward for the impacted talc businesses. The filing companies are operating as usual throughout the Chapter 11 process. They will continue to deliver products to customers and intend to meet obligations to employees and trade partners while maintaining a focus on safety. The Chapter 11 filing immediately suspends all outstanding U.S. talc-related litigation against the filing companies. As a result, it is expected that normal operating cash flow will be sufficient to satisfy all of the filing entities’ operating obligations during this period.