Asbestos Corp.'s US Bankruptcy Recognition Opposed by Claimants

A former asbestos mining company’s efforts to have its Canadian restructuring recognized by a New York court is encountering pushback from tort claimants who say the filing is a tactic to make an end-run around US creditor protections.

Asbestos Corp.'s attempt to leverage its “nominal” ties to Canada and force more than 6,000 US-based tort claimants into the “friendlier” Québec venue through recognition of its Chapter 15 petition should be denied, a Chapter 7 trustee and asbestos tort claimants told the US Bankruptcy Court for the Southern District of New York in an objection Tuesday.

The company, also known as ...