About Georgia-Pacific and Its Asbestos Products
Georgia-Pacific Corporation was founded in Augusta, Georgia in 1927 and grew to become one of the largest building products companies in the United States. By the 1960s, the company was a dominant supplier of gypsum wallboard (drywall) and the joint compound used to finish it. Georgia-Pacific sold its Ready-Mix joint compound — a pre-mixed paste used to tape and coat the seams between drywall panels — under its own label and through a subsidiary called Bestwall Gypsum Company.
From the early 1960s until at least 1977, Georgia-Pacific's joint compound formulations contained chrysotile asbestos. The asbestos was added as a binder and to improve the workability and bonding properties of the compound. Products were sold in five-gallon buckets and boxes at building supply stores and lumberyards across the country, making them one of the most widely distributed asbestos-containing building products in residential construction history.
In 2005, Koch Industries acquired Georgia-Pacific for approximately $21 billion, making it one of Koch's core industrial holdings. The asbestos liability that came with the acquisition would eventually prompt Koch and Georgia-Pacific to pursue the Texas Two-Step bankruptcy strategy described below.
How Georgia-Pacific Products Exposed Workers to Asbestos
The exposure pathway for Georgia-Pacific joint compound was well-documented by industrial hygiene researchers and extensively litigated in asbestos trials. The sequence was straightforward:
- Application: Drywall finishers (tapers) applied Ready-Mix joint compound over taped seams between gypsum panels using knives and trowels. At this stage, exposure was minimal.
- Drying: The compound was allowed to dry fully, which took 24 hours or more per coat. Most projects required two or three coats.
- Sanding: Once dry, the compound was sanded smooth using sandpaper, pole sanders, or power sanders. Dry sanding of asbestos-containing compound released visible clouds of fine dust. Industrial hygiene studies measured airborne asbestos fiber counts during this operation at levels many times the then-applicable occupational exposure limits — in some measurements, hundreds of times higher than background levels.
- Accumulation: Because drywall work was performed in enclosed buildings — often with no ventilation — fiber levels built up in the air and settled on surfaces, clothing, and hair. Workers inhaled fibers throughout the workday and carried contamination home.
The most heavily exposed workers were professional drywall tapers and finishers who sanded compound as a core part of their daily work over careers spanning decades. Also exposed were plasterers, painters who arrived to begin work before dust had settled, general construction laborers, and homeowners who used Georgia-Pacific products for do-it-yourself drywall finishing — a common activity in the 1960s and 1970s home improvement boom.
Key Georgia-Pacific Asbestos Products and Facilities
| Product / Entity | Type | Asbestos Era | Notes |
|---|---|---|---|
| Georgia-Pacific Ready-Mix Joint Compound | Drywall finishing compound | 1960s–1977 | Core product; chrysotile asbestos binder; sold nationally |
| Bestwall Gypsum Joint Compound | Drywall finishing compound | 1960s–1977 | Manufactured under Bestwall Gypsum Co. subsidiary brand |
| GP Gypsum Plaster / Texture Products | Wall texture and plaster | 1960s–mid-1970s | Spray and hand-applied textures; also contained chrysotile |
| Atlanta, GA (HQ and R&D) | Corporate headquarters | N/A | Product formulation and national distribution oversight |
| Multiple Gypsum Plants (Nationwide) | Manufacturing facilities | 1950s–1970s | Plants in GA, TX, NV, OH, and other states produced ACM |
The Bestwall LLC “Texas Two-Step” Bankruptcy
By 2017, Georgia-Pacific faced tens of thousands of pending asbestos lawsuits from drywall workers and their families. Rather than pay judgments or negotiate mass settlements through normal litigation, Georgia-Pacific — with the approval of parent Koch Industries — executed one of the most legally controversial asbestos liability strategies in U.S. corporate history.
How the Texas Two-Step Works
Texas law contains a unique provision (the Texas Business Organizations Code divisional merger statute) that allows a company to split itself into two separate entities through a “divisional merger.” In 2017, Georgia-Pacific used this mechanism to:
- Create a new subsidiary called Bestwall LLC, to which it transferred all of its historical asbestos liabilities.
- Georgia-Pacific LLC (the profitable operating company) retained all of the business assets, revenue streams, and operations.
- Within days of the divisional merger, Bestwall LLC filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Western District of North Carolina.
The bankruptcy filing triggered an automatic stay that halted all pending asbestos lawsuits — not just against Bestwall LLC, but also (Georgia-Pacific argued) against Georgia-Pacific LLC itself. The strategy was designed to concentrate all asbestos claims in one bankruptcy proceeding, potentially resolving them for far less than their tort values through a Section 524(g) asbestos trust.
Legal Challenges and Court Rulings
The Bestwall bankruptcy faced years of fierce opposition from mesothelioma claimants and their attorneys. A key legal question was whether the bankruptcy court could extend the automatic stay to Georgia-Pacific LLC — the solvent, profitable entity that had actually manufactured and sold the asbestos products.
In 2024, the Fourth Circuit Court of Appeals issued a significant ruling against Bestwall, holding that the bankruptcy court had exceeded its authority in extending the stay to cover Georgia-Pacific LLC's tort liability. This decision opened the door for plaintiffs in the Fourth Circuit to pursue civil lawsuits directly against Georgia-Pacific LLC, bypassing the bankruptcy proceeding entirely.
The Bestwall bankruptcy remains active and is still being litigated as of mid-2025. No Section 524(g) trust has been established and confirmed. The ultimate resolution — whether through a trust, direct litigation, or a negotiated settlement — remains uncertain.
Who Should Consider Filing a Claim
You or a family member may be entitled to compensation from Georgia-Pacific or through the Bestwall bankruptcy proceedings if:
- You worked as a drywall taper, finisher, mudder, or plasterer and regularly sanded joint compound during your career
- You worked in construction during the 1960s, 1970s, or early 1980s and were present when drywall sanding was performed nearby
- You are a homeowner or do-it-yourself renovator who regularly used pre-mixed joint compound on projects during that era
- A family member brought asbestos dust home on their clothing from drywall finishing work (secondary / take-home exposure)
- You have since been diagnosed with mesothelioma, asbestosis, lung cancer, or another asbestos-related disease
The unusual legal posture of the Bestwall bankruptcy means that the right avenue for your claim — a civil lawsuit against Georgia-Pacific LLC, a proof of claim in the Bestwall bankruptcy, or both — depends on where you live and when your claim was filed. An experienced asbestos attorney can evaluate which path offers the best recovery.
Frequently Asked Questions
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Georgia-Pacific manufactured Ready-Mix joint compound containing chrysotile asbestos from the 1960s through the mid-1970s. This product was used by drywall finishers — called tapers or mudders — to fill seams between gypsum panels. When the dried compound was sanded smooth, it released fine asbestos fibers into the air. Georgia-Pacific also sold asbestos-containing gypsum plaster and texture products during the same era.
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The Texas Two-Step is a controversial corporate restructuring strategy in which a solvent parent company uses Texas divisional merger law to split into two entities — one that retains the profitable operations and one that absorbs all the asbestos liabilities. In 2017, Georgia-Pacific used this strategy to spin off its asbestos liabilities into Bestwall LLC, which then filed for Chapter 11 bankruptcy. The strategy was intended to halt tort lawsuits and resolve claims through a bankruptcy trust at reduced values. Federal courts and asbestos plaintiffs challenged it extensively. In 2024 the Fourth Circuit ruled against Bestwall, limiting the reach of the bankruptcy stay, and the matter remains in active litigation.
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Drywall finishers — commonly called tapers, mudders, or drywall mechanics — who sanded Georgia-Pacific Ready-Mix joint compound were the most heavily exposed. Industrial hygiene studies documented that dry sanding of asbestos-containing joint compound produced fiber counts far above occupational exposure limits. Other exposed workers included general contractors, plasterers, painters present during sanding, and homeowners who performed their own finish work with GP products sold at hardware stores.
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As of 2024–2025, claims against Georgia-Pacific for asbestos exposure are in legal flux due to the Bestwall bankruptcy. The Fourth Circuit ruled that the bankruptcy stay could not be used to block lawsuits against Georgia-Pacific LLC (the profitable operating entity), meaning plaintiffs in many states may again be able to file or revive civil tort claims directly against Georgia-Pacific. An experienced asbestos attorney can advise you on whether to pursue a civil lawsuit against Georgia-Pacific, a Bestwall bankruptcy claim, or both. Acting quickly is important because statutes of limitations apply.
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As of mid-2025, no confirmed Section 524(g) trust has been established for Bestwall or Georgia-Pacific asbestos claims. The Bestwall LLC bankruptcy is still pending and no plan of reorganization with a funded trust has been confirmed by the court. This distinguishes the Georgia-Pacific situation from companies like Johns-Manville or Armstrong World Industries, which long ago established active trusts. Until the Bestwall bankruptcy is resolved, claims against Georgia-Pacific must be pursued through civil litigation or as proofs of claim in the active bankruptcy proceeding.
Worked with Georgia-Pacific Joint Compound?
If you were exposed to Georgia-Pacific or Bestwall joint compound and have been diagnosed with mesothelioma, you may be eligible for compensation through civil litigation or the Bestwall bankruptcy proceeding.