Kaiser Gypsum claimants’ request to move case to Washington denied

By Caroline Salls

Pittsburgh, Jan. 30 – A request by some Kaiser Gypsum Co., Inc. claimants to transfer the company’s Chapter 11 cases to the U.S. District Court for the Western District of Washington from the U.S. Bankruptcy Court for the Western District of North Carolina was denied Monday by the North Carolina court.

According to the motion, Kaiser Gypsum reincorporated in North Carolina on May 23 – 130 days before filing bankruptcy – following more than 50 years of domicile in Washington.

Despite the company’s effort to create jurisdiction in North Carolina, it does not satisfy the venue requirements to file for bankruptcy protection in the U.S. Bankruptcy Court for the Western District of North Carolina, the claimants said.

In addition, Kaiser Gypsum’s principal place of business and principal assets have been located in other jurisdictions during the 180 days before it filed bankruptcy, the motion said.

As a result, the claimants said they selected the Western District of Washington “both in the interests of justice and for the convenience of the parties.”

In Monday’s order, judge J. Craig Whitley said “Kaiser Gypsum has been incorporated in the State of North Carolina since May 23, 2016 – 130 days prior to the petition date – and, as a result, has been domiciled in North Carolina for a ‘longer portion’ of the 180 days prior to filing its Chapter 11 case than it was domiciled in any other state.”

The company, an Irving, Texas-based manufacturer of construction and remodeling materials, filed bankruptcy on Sept 30. The Chapter 11 case number is 16-31602.

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