U.S. Trustee Asks Bankruptcy Court to Order Red River To Cease Claims Process Activities

HOUSTON –– The U.S. Trustee involved in the Red River Talc bankruptcy proceedings has filed an emergency motion asking the court to prohibit the Debtor from conducting and funding an early claims administration process prior to receiving Court authorization.

The U.S. Trustee filed the emergency motion regarding the Debtor’s unauthorized commencement of claims processing on Jan. 16 in the U.S. Bankruptcy Court for the Southern District of Texas.

“The Debtor is taking action outside the ordinary course of business without Court approval,” the motion said. “The U.S. Trustee requests that the Court order the Debtor to cease the Early Claims …