Canada’s Asbestos Corp. Wins US Bankruptcy Court Recognition

A former asbestos mining company won US bankruptcy court recognition of its Canadian restructuring proceeding over objections from tort claimants who said the case is a tactic to make an end-run around US creditor protections.

Asbestos Corp.'s center of main interest is in Canada even though its insurance policies mostly cover US-based litigation and most of its creditors are US claimants, Judge Martin Glenn of the US Bankruptcy Court for the Southern District of New York ruled on Wednesday.

The company’s Canadian employees, management, headquarters, and ongoing business are enough to presume that its center of main interest is where ...