Barretts Minerals’ Creditors Move to Dismiss Its Bankruptcy

Barretts Minerals Inc.'s junior creditors moved to dismiss the bankrupt talc supplier’s Chapter 11 case because they said the company won’t be able to accomplish anything more in bankruptcy.

Barretts filed Chapter 11 in October to resolve asbestos liability related to talc production, but after getting court approval to sell its talc mine, the company is hiding out in Chapter 11 to obtain litigation protection for its corporate affiliates, creditors said.

“Seeking to benefit solvent—indeed, wealthy—non-debtors is not a legitimate bankruptcy purpose,” creditors said in a Tuesday motion in the US Bankruptcy Court for the Southern District of Texas. ...