Justice, Health Departments Aim to End Asbestos Center Bankruptcy

The Center for Asbestos Related Disease Inc.'s bankruptcy should be tossed because it doesn’t have funds to reorganize and it filed the case in bad faith, the federal government said.

The Montana-based nonprofit can’t use money from government grants to back a reorganization plan because the grant funds aren’t property of its estate, a US attorney representing the Department of Health & Human Services said in court papers Tuesday. The organization doesn’t appear to have sufficient funding outside of the grant money to support a plan, HHS said.

The center, also known as CARD, was formed to screen, diagnose, treat, ...