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Asbestos product manufacturer files for Chapter 11 bankruptcy

A manufacturer in another state recently decided to file for bankruptcy. Specifically, the company has decided to file for Chapter 11 bankruptcy, citing an asbestos case dating back to 2005 as the reason for its filing. Companies in Massachusetts and elsewhere that are financially struggling, sometimes as a result of litigation, may readily find relief through bankruptcy protection.

The company that recently filed for bankruptcy, called Bestwall LLC, claimed it was seeking bankruptcy protection so that it could permanently resolve all future and current claims related to asbestos exposure. This is possible by creating a bankruptcy trust that will compensate asbestos-related claims. The company considered this to be the only equitable and fair way of addressing such claims.

Bestwall produced joint compound products that contained small amounts of asbestos before 1978. According to the company, manufacturing and selling the product caused a small population of consumers to be exposed to asbestos. However, the company has faced litigation tied to the asbestos for four decades now, and these lawsuits will most likely continue until 2050 at least. The company claimed that it has paid litigation costs totaling $200 million in 2017 alone.

Business owners in Massachusetts who are burdened with lawsuits may feel that there is no way to overcome their financial troubles. Fortunately, Chapter 11 bankruptcy protection makes it possible for them to embark on the road to financial recovery. An attorney can provide guidance with the bankruptcy filing process and ensure that no steps are overlooked so that one's ultimate goal of financial freedom can finally be attained.

Source: madisonrecord.com, "Georgia Pacific's Bestwall seeks Chapter 11; Cites ???abuses in the tort system??? in Madison County", Heather Isringhausen Gvillo, Nov. 14, 2017

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