Product Liability & Toxics Law News

W.R. Grace Emerges from Chapter 11
After 12 Years; Forms Asbestos Trusts

Feb. 7, 2014, 12:43 AM

The first amended joint plan of reorganization of W.R. Grace & Co. became effective Feb. 3 and the company has emerged from Chapter 11 protection (In re W.R. Grace & Co., Bankr. D. Del., No. 01-01139 (KJC)).

According to a Feb. 3 press release, the debtor’s 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 Grace common stock, deferred payment obligations, insurance proceeds, and payments from former affiliates. All allowed claims of non-asbestos...

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