Barretts Minerals: Bankruptcy Judge Questions Asbestos Levels in Talc from Montana

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News Summary

A Texas bankruptcy judge is probing allegations of asbestos in talc sold by Barretts Minerals amid ongoing litigation and corporate restructuring.

Barretts Minerals: Bankruptcy Judge Questions Asbestos Levels in Talc from Montana

In a growing controversy centered in Dillon, Montana, a Texas bankruptcy judge is delving into serious allegations regarding talc sold by the now-defunct Barretts Minerals Inc. This inquiry raises critical questions about the potential for the talc to harbor unsafe levels of asbestos, a substance notorious for its links to mesothelioma and various asbestos-related diseases.

A Troubling Background

The case against Barretts Minerals OldCo, the rebranded name for Barretts Minerals Inc., has complexities that span multiple legal frameworks. The company, which filed for Chapter 11 bankruptcy in 2023 amidst hundreds of lawsuits claiming asbestos contamination, is aiming to navigate through the legal storm while attempting to settle numerous personal injury claims. Understanding the judge’s recent ruling becomes imperative, especially after U.S. Bankruptcy Court Judge Marvin Isgur affirmed that Barretts Minerals OldCo may continue its bankruptcy case despite the clamoring of claimants.

Financial Landscape and Asset Sales

In a strategic move, Barretts Minerals OldCo sold its talc business to Elevation NewCo, LLC—a subsidiary of Riverspan Partners—for an impressive $32 million on April 29, 2024. Following this acquisition, the company has re-emerged as High Divide Minerals, seemingly taking a fresh direction while retaining connections to the past operations in Montana.

Despite the financial transactions, the bankruptcy proceedings have revealed a complicated web of corporate shieldings. The personal injury claimants argue that Barretts Minerals is misusing bankruptcy protections to guard the solvent parent company, Minerals Technologies Inc., from lawsuits in various state courts. In the latest reports, Minerals Technologies Inc. has indicated a robust financial performance with $2.12 billion in sales and $287 million in operating profit last year, raising further questions about the motivations behind Barretts Minerals’ bankruptcy filing.

Litigation and Claimants’ Frustrations

Claims surrounding the contamination of talc have taken a dramatic turn. Barretts insists its talc was free of asbestos, a claim contested by various stakeholders who argue otherwise. The ongoing litigation is temporarily on hold, with the court allowing only certain testing claims to proceed. Claimants’ attorneys express deep discontent, seeing the current stay on lawsuits as a travesty of justice, with grave implications for those seeking compensation and closure.

Reserve Funds and Future Claims

In anticipation of future legal challenges, Minerals Technologies has set aside a significant $215 million reserve to address ongoing talc-related claims. This fund’s existence speaks volumes about the potential liabilities the parent company faces as the situation unfolds. As various appeals regarding bankruptcy rulings are in progress, the judge’s assessment of asbestos levels could sway the tide in favor of either the claimants or Barretts Minerals OldCo.

The Road Ahead

High Divide Minerals, as the successor to Barretts Minerals, now focuses on themes of employee safety, environmental stewardship, and community partnerships. Leadership emphasizes a commitment to rectify past business practices, yet skepticism remains regarding the effectiveness of these efforts against the backdrop of ongoing legal disputes and public health concerns.

As the situation develops, many are watching closely. The Texas judge’s forthcoming decisions surrounding asbestos contamination in the talc could prove to be pivotal in determining the viability of countless claims lurking in legal limbo. With the intersection of health, safety, and corporate responsibility at play, all eyes will be on the evolving narrative out of Dillon, Montana.