W.R. Grace & Co. makes reorganization plan for asbestos claims
November 16, 2004
W.R. Grace & Co. filed a reorganization plan in its Chapter 11 bankruptcy case, which includes a proposal to establish a trust for the asbestos claims against the manufacturer. The reorganization plan is Grace’s proposal for how to settle the asbestos and other Chapter 11 related claims since filing for bankruptcy protection in April 2001 after becoming overrun by asbestos lawsuits.
Grace said in a news release it is proposing a maximum aggregate payment for all asbestos related liabilities and related expenses of $1.6 billion. The asbestos trust would cover all pending and future asbestos related claims, including personal injury and property damage claims, in addition to administrative costs and legal expenses. For asbestos personal injury claims, the option of either litigating their claims against the trust or accepting settlements if meeting the eligibility criteria would be given. The asbestos property damage claimants would be required to litigate their asbestos claims through the trust.
Grace has requested a December 20 hearing to decide its disclosure statement, which must be approved by the court before votes on the plan can be solicited.Contact us for more information on asbestos claims.
