Mesothelioma Articles

Grace says it will file reorganization plan within four months

Posted: May 25, 2004

Source: Business Digest

W.R. Grace & Co., a chemical and building-materials maker forced into bankruptcy by asbestos-injury lawsuits, will file within 120 days its plan to emerge from Chapter 11, a company lawyer told a judge in Pittsburgh yesterday.

Asbestos personal-injury claimants are the only stakeholders delaying resolution of plan negotiations, Grace's lawyer, David Bernick, told U.S. Bankruptcy Judge Judith Fitzgerald at a hearing in Pittsburgh. Fitzgerald granted Columbia-based Grace a six-month extension of a procedural plan-filing deadline and said the proposal should be filed within four months.

Filing the proposal would be a major milestone toward ending Grace's three-year bankruptcy reorganization. The plan, a blueprint for paying asbestos victims, bondholders and other creditors, may provide a recovery for Grace's shareholders.

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