Two talc producers, Imerys Talc America Inc. and Cyprus Mines Corp., currently in bankruptcy, have informed a Delaware bankruptcy judge of their decision to extend ongoing mediation with talc claimants and insurers. The aim is to work towards a settlement addressing numerous claims of ovarian cancer and mesothelioma linked to talc products, notably those supplied to Johnson & Johnson.
In a stipulated order, Imerys and Cyprus revealed that the mediation initiated in December will continue until April 8. This extension allows for further negotiation towards achieving a comprehensive resolution that could result in a confirmable Chapter 11 plan.
The mediation, originally scheduled to conclude by February 28, has seen significant activity, with further negotiations anticipated in March. The extension reflects the parties’ commitment to pursuing a global deal, notwithstanding the complexities involved.
Imerys filed for bankruptcy protection in February 2019 amid a wave of injury claims alleging that its talc products contained cancer-causing asbestos. Cyprus, Imerys’ former parent company, filed its own Chapter 11 case in February 2021 as part of a settlement agreement with Imerys.
Johnson & Johnson, facing liability from claimants in the Imerys case, had sought to negotiate a global settlement before the plan was derailed last year. The failure of these negotiations prompted J&J to spin off its talc liability into a new subsidiary that filed for Chapter 11 protection in October.
Parties Involved and Mediation Progress
The mediation involves the two debtors and their respective talc claimants committees, future claims representatives, and insurers. Under the guidance of mediator Kenneth R. Feinberg, significant exchanges of information and documents have taken place. Ongoing discussions among the debtors focus on the mediation’s objectives and strategies for achieving them.
As mediation progresses, stakeholders remain committed to finding a resolution that addresses the concerns of talc claimants and insurers while facilitating the bankruptcy process for the debtors. The extension underscores the complexity of the issues at hand but also reflects a shared determination to reach a fair and equitable settlement.
