Imerys Talc disclosure statement draws objection from U.S. trustee

By Sarah Lizee

Olympia, Wash., Oct. 5 – Imerys Talc America, Inc.’s amended disclosure statement drew an objection on Sunday from the U.S. trustee overseeing the case, according to a notice filed with the U.S. Bankruptcy Court for the District of Delaware.

Regions 3 and 9 trustee Andrew R. Vara said in his objection that the disclosure statement cannot be approved because creditors are not provided with adequate information, as it does not “disclose or explain the amended plan’s lack of safeguards against fraud or abuse, nor does it explain or justify the fact that, under the amended plan, numerous claims may be paid that would not have been viable and that have not historically been paid in the tort system – thereby subjecting all other legitimate claimants to a risk that their claims will be diluted.”

Vara also said that the disclosure statement will not be able to satisfy the confirmation requirements of 11 U.S.C. § 1129 because it fails to include adequate safeguards against fraud and abuse and does not disclose that one of the major recovery sources, the “J&J Indemnity,” does not exist.

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.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.