Ex-Talc Supplier Bankruptcy Survives Despite Creditor Pleas (2)

Whittaker, Clark & Daniels Inc., a defunct talc supplier, defeated junior creditors’ bid to toss its bankruptcy with a ruling from the Third Circuit that upheld a lower court’s decision.

A panel of three judges on Wednesday held that the case was properly filed due to choice of law precedent, shutting down a talc claimants committee’s effort to dismiss the Berkshire Hathaway affiliate’s Chapter 11.

The panel also concluded that successor liability claims that the committee sought to assert against a former owner belong to Whittaker’s bankruptcy estate—not claimants—meaning the company may pursue those claims.

While bankruptcy law provides “cause” ...