WR Grace emerges from bankruptcy after 13 years
WR Grace has officially emerged from bankruptcy, nearly 13 years after initially filing for Chapter 11 protection over asbestos claims.
In a statement released Tuesday, the US-based catalysts and specialty chemicals company said a joint plan of reorganization has become effective today.
"The joint plan establishes two independent trusts to compensate asbestos personal injury claimants and property owners," WR Grace said in a statement.
"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," it continued. "All allowed claims of non-asbestos creditors will be paid in full."
On April 2, 2001, Grace voluntarily filed for reorganization under Chapter 11 of the US Bankruptcy Code in order to resolve its asbestos-related liabilities. At the time of its filing, Grace faced 65,656 cases involving 17 property-damage claims and more than 129,000 personal-injury claims.
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