On February 13, 2019, the North American talc subsidiaries of the Imerys Group – Imerys Talc America, Imerys Talc Vermont, and Imerys Talc Canada – filed for Chapter 11 protection. We believe that this is an important, meaningful, and strategic step for our business and the right choice for the future.
Why are we taking this step? In recent years, certain filing subsidiaries have been named as defendants in litigation in the U.S. based on alleged hazards related talc. Imerys believes strongly and continues to maintain that the ongoing talc-related litigation in the U.S. is without merit. Put simply, filing for Chapter 11 protection allows us to resolve the uncertainty surrounding this litigation, minimize the long-term impact on our financial situation, and best position our business for sustained growth in the future.
Filing for Chapter 11 will allow us to continue business as usual – to serve our customers with the same high standards we always have – while we work to achieve our financial and legal goals.
The filing subsidiaries expect to emerge from the Chapter 11 process in the first half of 2020, having resolved our historic talc-related liabilities and poised for continued growth.
In the meantime, our business is operating as usual. Employees will see no changes to their day-to-day roles and responsibilities or wages, salary, and benefits as a result of this filing. Customers will continue to receive the same safe, high-quality products. Suppliers will be paid on a timely basis for all future deliveries.
We believe this is an important and valuable step for our business and we are truly confident in our future. We are grateful to our employees for their contributions to the business’s success, and to our customers and vendors for their ongoing partnership.
Giorgio La Motta, President, Imerys Talc America, Imerys Talc Vermont, and Imerys Talc Canada