THREE FORKS– Imerys Talc America, Inc. has filed for Chapter 11 protection in an effort to protect the company’s long-term interests and address their historic talc-related liabilities in the United States.
Chapter 11 bankruptcy is designed for companies to ward off creditors, and allow them to reorganize and continue operating.
Imerys Talc America was joined in the case with Imerys Talc Vermont, Inc. and Imerys Talc Canada, Inc.
“This is an important, meaningful, strategic step for our business. After carefully evaluating all possible options, we determined that pursuing Chapter 11 protection is the best course of action to address our historic talc-related liabilities and position the filing companies for continued growth. The safety of talc has been confirmed by dozens of peer-reviewed studies, as well as regulatory and scientific bodies, and the litigation is entirely without merit,” commented Giorgio La Motta, President, Imerys Talc America, Imerys Talc Vermont, and Imerys Talc Canada.
“However, it is simply not in the best interests of our stakeholders to litigate these claims in perpetuity and incur millions of dollars in projected legal costs to defend these cases. By deciding to file for Chapter 11 protection, we have laid the groundwork to efficiently resolve our historic talc-related liabilities and focus on our continued success in the industry.”
A spokesperson for Imerys Talc America also released the following statement:
“Imerys Talc America and all of its locations, including Three Forks, will continue to operate as usual throughout this process. Employees shouldn’t see any changes to their roles or wages and benefits as a result of the Chapter 11 filing, and our company is continuing to provide safe, high-quality products to our customers.”
Imerys was involved with a lengthy labor dispute with its Montana workers last year, locking them out of the plant for weeks.