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Hess Unit’s ‘Bad Faith’ Bankruptcy Should Be Axed, Creditors Say

Sept. 23, 2022, 9:16 PM

Creditors of a bankrupt Hess Corp. unit are seeking to dismiss its Chapter 11 case, accusing the energy company of abusing US bankruptcy law to settle hundreds of asbestos exposure claims stemming from one of its Caribbean oil refineries.

The subsidiary, Honx Inc., is a non-operating unit that is being used by Hess as a shield to avoid litigating about 900 pending lawsuits against the oil giant in the US Virgin Islands, an official committee of unsecured creditors said in a filing Thursday.

A number of highly profitable large corporations have put subsidiaries into Chapter 11 in recent years to ...