Jan 31 W. R. Grace & Co said its
reorganization plan has been approved by the U.S.
district court of Delaware, clearing a major hurdle for the
chemical and building products maker to emerge from its
decade-long bankruptcy protection.
Grace filed for Chapter 11 bankruptcy in April 2001, weighed
down by asbestos-related claims. A bankruptcy court confirmed
its reorganization plan exactly a year ago.
The reorganization plan calls for setting up two asbestos
trusts to compensate personal injury claimants and property
owners, Grace said in a statement on Tuesday.
Funds for the trust will come from a variety of sources
including cash, warrants to purchase common stock, insurance
proceeds, among others and will cover all current and future
asbestos claims, the company said.
"I am optimistic that the legal process related to our Joint
Plan is coming to an end and we can emerge in the near future,"
said Chief Executive Fred Fest.
The timing of the company's emergence from bankruptcy
depends on a number of factors, including whether there are
further appeals to the reorganization plan, whether conditions
to payments from third parties can be satisfied or waived, among
The case is In re: W.R. Grace & Co, U.S. District Court,
District of Delaware, No:11-00199 and W.R. Grace & Co, U.S.
Bankruptcy Court, District of Delaware, No. 01-01139.