Filing Alert: Miyoshi America Chapter 11

Update (Apr. 28, 2026): A comprehensive case summary is now available for the Chapter 11 bankruptcy filing of Miyoshi America, Inc.

Miyoshi America, Inc., a Dayville, CT-based developer and manufacturer of surface-treated pigments and mineral substrates for the cosmetics industry, filed for Chapter 11 protection on Apr. 27 in the U.S. Bankruptcy Court for the Southern District of Texas.

The company attributes its filing to an unsustainable escalation in talc- and asbestos-related personal injury litigation, which severely constrained liquidity and, absent a restructuring, would likely have resulted in a near-term liquidation. Despite discontinuing its talc-based product lines in mid-2025 and vigorously disputing all liability, the debtor currently faces approximately 270 lawsuits alleging mesothelioma, with new filings accelerating to 167 cases in 2025 alone. Mounting defense costs, escalating settlement demands, and limited available insurance coverage placed an insurmountable strain on the company’s liquidity and, absent a Chapter 11 filing, would have entirely eroded its remaining resources, prompting the debtor to pursue a global resolution under section 524(g) of the Bankruptcy Code.

The prepackaged filing aims to implement a comprehensive restructuring pursuant to a prepetition term sheet negotiated with a future claimants’ representative and an ad hoc committee of plaintiffs’ firms representing approximately 90% of pending talc claims. Following a prepetition solicitation process that garnered over 99% acceptance from claim holders, the plan will establish a section 524(g) channeling injunction and a Talc Personal Injury Trust. The trust will be funded by a $19 million effective date cash contribution (funded by the Debtor with support from its parent, Miyoshi Kasei, Inc. (MKI)), alongside a $1 million, six-month promissory note secured by a first-priority pledge on 50.1% of the reorganized equity. In exchange for funding the settlement, MKI will receive 100% of the equity in the reorganized debtor.

To fund the case and support ongoing operations, the debtor has secured a DIP financing facility from MKI consisting of $5 million in new money and a roll-up of $15 million in prepetition secured intercompany debt. The debtor enters Chapter 11 with its standalone operations intact and remains substantially current on approximately $2.65 million in prepetition trade obligations.

Miyoshi America, Inc. reports $10 million to $50 million in both assets and liabilities. The filing indicates that there will be funds available for distribution to unsecured creditors. The case number is 26-90522.

Top Unsecured Claims

Key Parties

Counsel:

• Charles S. Kelley
  Mayer Brown LLP
  Email: [email protected]

Financial Advisor:

• Alvarez & Marsal North America, LLC

Investment Banker:

• Smith Goffman Partners

Signatories:

• Edward Houlihan – Vice President

Claims Agent:

• Stretto, Inc.

Equity Security Holders:

• Miyoshi Kasei, Inc. – 10% or more

Bondoro Insights is continuing to monitor this case and will provide further coverage as appropriate.

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