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Miyoshi America Inc., a key supplier of surface-treated pigments and powders used by major cosmetics brands, has filed for Chapter 11 bankruptcy protection in a move aimed at resolving years of litigation tied to alleged talc and asbestos exposure claims.

The filing, submitted in the U.S. Bankruptcy Court for the Southern District of Texas, outlines a financial snapshot of roughly $10 million to $50 million in both assets and liabilities, with about $30.7 million in assets listed. The company says it intends to keep operating while reorganizing its legal and financial structure.

Parent company debt and restructuring financing

Court filings show Miyoshi America owes about $15 million in funded debt to its parent company, Miyoshi Kasei Inc. To stabilize operations during bankruptcy, the company plans to secure $20 million in debtor-in-possession financing from the parent.

That funding includes $5 million in new capital along with a restructuring of the existing $15 million debt, effectively rolling it into the bankruptcy framework.

The company says this financial bridge is intended to keep operations steady while it navigates the court-supervised restructuring process.

$20 million trust designed to absorb litigation claims

As part of its reorganization plan, Miyoshi proposes the creation of a $20 million trust specifically designed to handle talc-related personal injury claims.

According to a declaration filed by Vice President Edward Houlihan, the structure would operate as a 524(g) trust, a legal mechanism often used in mass tort bankruptcies involving asbestos or similar long-tail liability claims.

The trust would be funded through a $19 million cash contribution from the company and an additional $1 million promissory note.

Houlihan described the approach as the “most efficient and expeditious means” of restructuring while still providing compensation channels for both current and future claimants.

Injunction would shield company from future lawsuits

Under the proposed plan, claimants would be directed to the trust instead of pursuing litigation against the reorganized company or affiliated entities, including Miyoshi Kasei Inc.

That protection would come through a so-called channeling injunction, which would block future talc-related injury lawsuits tied to products sold before the bankruptcy exit.

The company argues this structure is necessary to stabilize its business while resolving ongoing legal exposure.

Dozens of law firms involved in claims

Court documents list 25 law firms currently pursuing or involved in talc personal injury claims against Miyoshi America. While the company denies any liability related to talc or asbestos exposure, it acknowledges that litigation costs have become increasingly difficult to sustain.

Houlihan stated that continued legal battles and settlements are “not sustainable” for ongoing operations.

Bankruptcy framed as path to survival

Despite rejecting the underlying allegations, Miyoshi says Chapter 11 offers the only workable path forward. The company believes the trust-based restructuring will allow it to continue operating while resolving disputes in a centralized system.

Houlihan emphasized confidence that the bankruptcy process will provide “fair and equitable treatment” for claimants while allowing the company and its stakeholders to move beyond years of litigation pressure.