Chemtura Asks To Put Diacetyl Suits On Hold

Law360, New York (June 18, 2009, 12:00 AM EDT) -- Bankrupt chemical company Chemtura Corp. has asked a court to stay product liability lawsuits against its nondebtor Canadian unit over the flavoring chemical diacetyl, which is thought to cause lung disease when inhaled in large quantities.

Chemtura filed an adversary complaint on Thursday in the U.S. Bankruptcy Court for the Southern District of New York seeking a declaratory judgment that the automatic stay in its bankruptcy extends to Chemtura Canada and its exclusive reseller Citrus & Allied Essences Inc., in order to prevent diacetyl claimants from...
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