A major corporate legal battle in North Carolina has taken a significant turn for families affected by asbestos.
A federal bankruptcy judge has denied a request to appoint an independent trustee to take over the Chapter 11 case of Bestwall, a spinoff of manufacturing giant Georgia-Pacific.
The ruling deals a heavy blow to a group of mesothelioma patients and victims who hoped a trustee would speed up a stagnant settlement process. Bestwall was created under a controversial corporate legal maneuver that shifted Georgia-Pacific's massive asbestos liabilities onto the spinoff before immediately filing for bankruptcy.
Attorneys for the patients argued that current management has intentionally dragged out the process for nearly a decade. With the judge's decision, current corporate leadership will retain control of the restructuring, keeping a multi-billion dollar payout to victims on hold.
