Georgia-Pacific Unit’s Claimants Appeal Bankruptcy to High Court

A bankrupt Georgia-Pacific LLC unit’s junior creditors asked the US Supreme Court to weigh in on the validity of the company’s efforts to address asbestos-related liabilities in Chapter 11.

The Feb. 20 petition to the high court comes after the US Court of Appeals for the Fourth Circuit in August rejected talc claimants’ efforts to end the Bestwall LLC bankruptcy, which they say was filed in bad faith, so they could pursue their lawsuits outside of bankruptcy court.

Georgia-Pacific in 2017 became the first company to attempt the controversial Texas Two-Step legal maneuver, also known as a divisional merger, to ...