A defunct talc supplier owned by Berkshire Hathaway Inc. has filed for bankruptcy, adding to the pileup of cosmetic talc businesses entering chapter 11 to weather mass lawsuits alleging that once-popular consumer products exposed their users to asbestos, WSJ Pro Bankruptcy reported. Former talc supplier Whittaker, Clark & Daniels Inc. and several of its affiliates filed for protection in New Jersey Wednesday, citing liabilities to more than 1,000 personal-injury plaintiffs who allege that asbestos made its way into talc-containing cosmetic products such as Old Spice powder and Mary Kay cosmetics decades ago. Whittaker Clark filed chapter 11 despite the recent appointment of a receiver over its affairs after it was hit by a $29 million verdict in South Carolina in March and found by the trial judge to be in danger of insolvency. Whittaker Clark’s chief restructuring officer, Mohsin Meghji, said in court filings that the company “disputes the validity and enforceability of the receivership order.” His court filing said that Whittaker Clark filed chapter 11 because it lacks any alternative mechanism to efficiently and equitably address its asbestos liabilities. Berkshire Hathaway indirectly owns Whittaker Clark’s parent company, Soco West Inc., which also filed for chapter 11, court papers show. Berkshire Hathaway said Thursday that Whittaker Clark had ceased operations in 2004 and had sold off its operating assets, though it continued to defend against the tort and environmental claims it faced.
