In the face of hundreds of mesothelioma and asbestos injury claims, the parent company of defunct talc supplier Barretts Minerals has proposed contributing $450 million to an asbestos bankruptcy trust to compensate victims. But Minerals Technologies’ proposal faces significant opposition from the committee representing the majority of claimants, and the parties are still waiting for a court ruling about whether Barretts’ talc actually contained asbestos.
Mesothelioma Victims’ Committee Rejects $450 Million Settlement as Insufficient
Barretts Minerals faces hundreds of mesothelioma and asbestos injury claims from people who blame exposure to its products for their illnesses. The company sold talc to manufacturers for decades, then filed for Chapter 11 bankruptcy protection in 2023 and sold its talc business. Under the proposed reorganization plan filed last week in U.S. Bankruptcy Court in Houston, Minerals Technologies would contribute $450 million cash to an injury trust in exchange for liability releases for itself and all its affiliates.
The committee representing mesothelioma and other asbestos disease victims says that the offer will be rejected because 82% of its clients are against it. With approval for bankruptcy reorganization plans requiring substantial creditor support, this represents a significant obstacle. to be approved. While the court-appointed mediator acknowledged that Minerals Technologies had “put a lot of money on the table,” he also said he understood why the claimant committee is “angry” and cannot trust the proposal. “The committee, I think legitimately, is skeptical about that because we have been frustrated in the process.” Since May, multiple mediation attempts have been unsuccessful.
Mesothelioma Trust Payment Committed Regardless of Safety Testing Outcome
During Monday’s hearing, Judge Marvin Isgur asked Minerals Technologies whether the proposed settlement would be honored, even if he allowed mesothelioma lawsuits alleging failure to conduct proper safety testing on Barretts’ talc to proceed. The attorney for Minerals Technologies confirmed that the company would commit to the $450 million payment regardless, but also asked the court to defer any decision on the plan until a district court considers the threshold issue of whether Barretts Minerals’ talc contained asbestos.
That district court hearing is scheduled for July 15 in the U.S. District Court for the Southern District of Texas, with a follow-up bankruptcy court hearing set for July 16 to argue whether the plan has sufficient creditor support for confirmation. The outcome of the asbestos-in-talc threshold question could significantly affect how mesothelioma claimants and the court evaluate the adequacy of the $450 million proposed trust. Victims and their families will be watching closely to see whether a company that supplied talc for years will be held fully accountable for the mesothelioma and other cancers its products allegedly caused.
If you or someone you love has been diagnosed with mesothelioma, the Patient Advocates at Mesothelioma.net are here to help. Contact us today at 1-800-692-8608 to learn more.
