Minerals Technologies Subsidiaries Barretts Minerals And Barretts Ventures Texas File For Bankruptcy

Minerals Technologies Inc MTX said its subsidiaries, Barretts Minerals Inc (BMI) and Barretts Ventures Texas LLC (together, the Debtors), filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas.

The petition is aimed to address and broadly resolve BMI's liabilities associated with talc.

The debtors intend to operate their businesses normally throughout the duration of the Chapter 11 cases.

BMI intends to pursue a sale of its talc assets under section 363 of the Bankruptcy Code.

Proceeds of the sale will be used to fund the Chapter 11 case and an anticipated section 524(g) trust.

To facilitate the goal, the debtors have received a commitment of approximately $30 million in debtor-in-possession financing (DIP) from JMB Capital Partners Lending, LLC.

The financing will provide sufficient liquidity to continue operations until the debtors are able to access the proceeds of the sale.

No other subsidiaries or business units of Minerals Technologies are included in the filing and all are operating business as usual and will continue to do so during and after the Chapter 11 process.

"We continue to believe the lawsuits against BMI are meritless, and stand by the safety of BMI's talc products, which have always been tested to the highest standard," said Board Chairman and CEO Douglas Dietrich.

"We considered a number of options and are confident that this path will provide the best resolution to all stakeholders, including talc claimants, employees, customers, and shareholders."

Price Action: MTX shares closed lower by 0.87% at $54.76 on Friday.