Imerys Talc America files plan; talc claims trust to be established

By Caroline Salls

Pittsburgh, May 15 – Imerys Talc America, Inc. filed a Chapter 11 plan and related disclosure statement Friday with the U.S. Bankruptcy Court for the District of Delaware.

A talc personal injury trust will be established under the plan to resolve talc personal injury claims.

In addition, the plan calls for a court-supervised process under which the assets of Imerys’ North American debtors will be marketed for sale.

Imerys SA has agreed to contribute a cash contribution to the reorganized debtors equal to the $22.7 million balance of an intercompany loan, $5 million for payment of allowed class 3a claims and up to $15 million to the extent the debtors do not have enough available cash to pay administrative claims in full.

Imerys will also contribute to the talk personal injury trust.

Under the plan, holders of unsecured claims against the North American debtors that are not personal injury claims will be paid in full.

Equity interests in the North American debtors will be canceled and extinguished.

Secured claims will be paid in full in cash or reinstated.

Although Imerys Talc Italy is not currently in bankruptcy, the disclosure statement said it will solicit acceptances of a pre-packaged plan of reorganization that would provide for the permanent settlement of talc personal injury claims against it.

Other equity interests in and claims against Imerys Talc Italy will be unimpaired or otherwise “ride through” the Chapter 11 cases.

The disclosure statement hearing is scheduled for June 30.

Imerys SA is a Paris-based producer of industrial materials. Its subsidiaries filed bankruptcy on Feb. 13, 2019 under Chapter 11 case number 19-10289.

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