Companies that expose workers or consumers to asbestos may be liable for causing illness. The clear connection between asbestos and mesothelioma, as well as several other types of cancer, has resulted in the judicial system prioritizing the protection of those exposed to asbestos.
Companies that close or file for bankruptcy generally need to account for asbestos-related claims during that process. They often need to fund specialized trusts.
Here in Georgia, numerous manufacturers have potentially exposed both their employees and the public to asbestos. For one of those companies, Bestwall, a subsidiary of Georgia-Pacific, asbestos-related claims have forced the company to consider a second Chapter 11 bankruptcy.
Asbestos claims carry high price tags
During a recent hearing, an executive from Bestwall, formerly known as Bestwall Gypsum Company, acknowledged that the parent company, Georgia-Pacific, cannot fully absorb the massive costs associated with successful asbestos litigation.
In fact, Bestwall primarily exists as a vehicle to hold asbestos-related liability for the parent company. The company has attempted the so-called “Texas Two-Step,” which involves moving debts to a subsidiary and then having the smaller organization file for bankruptcy relief. The organization has committed more than $1 billion in funds to a trust that provides asbestos compensation.
Bestwall previously restructured in a Chapter 11 bankruptcy. The organization now seeks to further restructure and may potentially file a second Chapter 11 bankruptcy, sometimes known as a Chapter 22 bankruptcy. The courts generally take appropriate steps to ensure that even bankruptcy does not eliminate the financial liability of businesses that had workers handle asbestos or exposed consumers to asbestos.
Still, the process of seeking compensation can be complex. Working with an attorney can help people pursue Georgia asbestos claims. Even companies that closed or filed for bankruptcy may have a trust in place for those with asbestos-related illnesses.