Barretts Minerals Proposes Trust to Settle Asbestos Lawsuits

Bankrupt talc supplier Barretts Minerals Inc. proposed a reorganization plan that directs claims to a designated trust to resolve asbestos claims.

Barretts, now known as BMI OldCo Inc., says the issuance of a “channeling injunction” is “essential” to its reorganization efforts, according to a Wednesday filing in the US Bankruptcy Court for the Southern District of Texas. The plan was filed after months of mediation.

The bankruptcy code section that allows channeling injunctions, which has been used to resolve billions of dollars in asbestos-related claims in other cases, provides a mechanism for debtors to create a trust focused only on asbestos ...