PLASTER CITY — The United States Gypsum Corp. filed for reorganization protection under Chapter 11 of the U.S. bankruptcy code to manage growing asbestos litigation costs and to resolve asbestos claims in a fair and equitable manner, the company announced Monday.
Robert Williams, Chicago-based USG director of corporate communications, said there would be no effect locally.
"It's business as usual," Williams said, adding no layoffs are expected.
The filing only affects USG's United States Gypsum Co. subsidiary.
In a letter to employees, the company wrote that the Chapter 11 filing should have little effect on the jobs of most employees, and Williams said too much should not be read into the statement. He said those whose jobs will be affected will be company attorneys, as the reorganization filing will allow the company to move the various asbestos lawsuits against the company to a single courtroom in Delaware.
In a separate letter to suppliers, the company states it understands the immediate impact from the company not paying for goods and services owed prior to the filing, but that federal law does not allow a business in Chapter 11 to pay those debts except by court order.