Talc Mining Company Barretts Minerals Pursues Asbestos Trust Fund

The talc mining and processing company Barretts Minerals is proceeding with a plan to create an asbestos trust fund to pay cancer victims who used the company’s products.

The talc supplier filed for bankruptcy as part of a plan to reorganize assets and direct all legal claims to a designated trust fund. This fund, when tasked with resolving legal claims related to asbestos exposure and asbestos-related diseases, is called an asbestos bankruptcy trust fund.

Barretts Minerals, now known as BMI OldCo Inc., says this is “essential” to its reorganization efforts. According to Bloomberg Law, the company filed a motion to proceed with this plan last week in the U.S. Bankruptcy Court for the Southern District of Texas.

 

More About Barretts Minerals

Barretts Minerals is a property of Minerals Technologies Inc. The company mines for and processes talc, which is a naturally occurring mineral in the earth’s soil. Barretts Minerals operated two talc mines in Dillon, Montana, and two facilities in Montana and Texas.

Talc is sought for skincare products, such as cosmetics or baby powder, because the mineral can absorb moisture. This helps keep skin dry and healthy. Talc is also used to make food, pharmaceuticals, rubber, paper and coatings. TALCRON talc products are produced by Barretts Minerals.

The issue with using talc as an ingredient for anything – particularly for cosmetics and other powders to use on skin – is the presence of asbestos. Talc and asbestos are found in similar geographic areas, and asbestos can contaminate talc during mining.

Asbestos is a proven carcinogen, which means it can cause cancer. Asbestos is the only known cause of mesothelioma, and it’s also linked to lung cancer and ovarian cancer.

Asbestos in talc products – including baby powders – has allegedly resulted in cases of cancer and personal injury lawsuits against manufacturing and mining companies, including Barretts Minerals.

 

Why Companies Turn to Asbestos Trust Funds

For decades, asbestos and talc manufacturing companies have used a subsidiary company to file for bankruptcy and skirt facing mesothelioma lawsuits from people diagnosed with the cancer or their loved ones if they are already deceased. Payments from asbestos trust funds are far lower than those from lawsuit settlements or verdicts – often a difference of multiple millions of dollars.

Companies also often file in Texas due to a favorable court system for bankruptcy maneuvers. The strategy of creating a subsidiary company to shoulder legal liabilities and go bankrupt to avoid lawsuits is called the “Texas Two-Step,” originating in Texas.

As the latest example, Barretts Minerals is based in Montana but filing the bankruptcy in Texas.

 

Current Legal Situation for Barretts Minerals

According to court documents, the company faces more than 880 legal claims from victims who allege the talc products they used contain asbestos. This mountain of lawsuits is largely why the company filed for Chapter 11 bankruptcy relief and intends to open an asbestos trust fund.

Barretts Minerals no longer sells cosmetic products with talc as an ingredient. The company may still sell talc for non-cosmetic consumer applications, such as food.

Users of Barrett Minerals’ talc products are most at risk of exposure to asbestos, developing a cancer like mesothelioma, and filing a lawsuit against the company. Others at risk include:

• Miners
• Factory plant workers
• Mill workers
• Ceramics workers
• Food processors

If you have mesothelioma and used Barretts Minerals talc products, including TALCRON, you might be entitled to compensation to help pay for treatment, lost wages, and more relief. Contact our legal team by emailing Carl Jewett at cjewett@mesotheliomaguide.com for immediate assistance.

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California, USA – November 17, 2018: A Kawasaki Wheel Loader parked in a talc mine in the California desert