W.R. Grace Exits Bankruptcy in U.S.
U.S. chemical producer W.R. Grace has emerged from Chapter 11 creditor protection after almost 13 years. The company filed for protection in April 2001 after facing just under 130,000 personal injury and property damage claims attributed to asbestos contamination from its products.
Some 120 of the claims stemmed from mining operations in Libby, Montana, where Grace operated a vermiculite mine and processing mill from 1963 to 1990.
In 2008, the company first filed its first joint reorganization plant to facilitate emergence from bankruptcy. However, it took until early 2011 to settle appeals cases.
The final reorganization plan, which took effect on Feb.3 of this year, establishes two independent trusts, funded with $4 billion, to finally resolve all claims. Prior to declaring bankruptcy, Grace had paid more than $560 million in claims.
While operating under Chapter 11, grown. Grace has continued to expand its business, completing 25 acquisitions, including the $500 million takeover of the Unipol polypropylene licensing and catalysts business from Dow Chemical, in December. Over the period, sales revenue grew from $1.6 billion to $3.2 billion.
