Advertisement

W.R. Grace Plan Effective

Advertisement

W.R. Grace’s Joint Plan of Reorganization became effective, and the Company emerged from Chapter 11 protection. The U.S. Bankruptcy Court confirmed the Plan in January 2011, and the U.S. District Court entered an order in January 2012. The District Court order was subsequently reaffirmed on June 11, 2012, explaining, “Having now reviewed several thousand pages of party briefing and having had the benefit of two oral arguments, the Court finds that the parties’ Objections are denied, and…the Joint Plan is confirmed in its entirety.” Both Bankruptcy and District Court orders are required as a result of the case’s asbestos exposure component. The Joint Plan establishes two independent trusts to compensate asbestos personal injury claimants and property owners. The trusts will be funded with more than $4 billion from a variety of sources including cash, warrants to purchase W.R. Grace’s common stock, deferred payment obligations, insurance proceeds and payments from former affiliates. All allowed claims of non-asbestos creditors will be paid in full. This chemical and construction holding company filed for Chapter 11 protection in April 2001, listing $2.6 billion in total pre-petition assets.

More on W.R. Grace & Co.