April 4, 2011 – Chemical maker W.R. Grace & Co. has announced that a Delaware bankruptcy judge has confirmed its Chapter 11 reorganization plan. The reorganization plan must also be confirmed by a U.S. District Court judge in Delaware before the company can exit bankruptcy protection.
The reorganization plan includes two asbestos trusts that are intended to have enough assets to cover all current and future asbestos claims. The asbestos trusts will be funded from sources including cash, warrants to buy common stock, future payments, and insurance proceeds.
W.R. Grace sought bankruptcy protection in April 2001. At that time, the company claimed it had been named in 110,000 asbestos personal injury claims and the bankruptcy filing put the lawsuit claims on hold. In Libby, Montana, asbestos contamination from a former W.R. Grace vermiculite mine has been blamed for causing the illness and death of hundreds of people. From 1923 to the early 1990s, millions of tons of the asbestos-contaminated vermiculite ore were shipped from the Libby mine to about 270 processing plants across the United States for use in insulation, fireproofing, gardening and other products.
Read More: http://www.bloomberg.com/news/2011-01-31/wr-grace-bankruptcy-judge-approves-chap-11-plan.html
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