Asbestos Settlement Proposed By W. R. Grace
Posted on Apr 15, 2008
A proposed settlement has been reached by W.R. Grace & Co. Inc. regarding all current and future personal injury claims related to asbestos against the company.
In 2001, the Columbia, Maryland-based chemical company filed Chapter 11 bankruptcy faced with huge liabilities because of asbestos. On April 7, the company said that it had reached the tentative settlement with a committee of claimants for personal injury suits related to asbestos, a representative handling future claims, and a group of the company’s stockholders.
The settlement would reach a total of over $2 billion and would include:
- $250 million in cash.
- Deferred payments of $110 million each year for five years beginning in 2019 and $100 million each year for 10 years beginning in 2024.
- Warrants for the purchase of 10 million shares of Grace common stock at a $17 a share. The warrants would expire one year after Grace’s reorganization plan goes into effect.
- Rights to proceeds of Grace’s insurance coverage related to asbestos.
- The value of cash and stock under settlements of litigation with Sealed Air Corp. and Fresenius Medical Care Holdings.
Grace manufactures silica and aluminum-based catalysts for use in industry and specialty chemicals and materials for use in construction and the packaging of food and beverages.