Bloomberg News
Sunday, September 21, 2008

W.R. Grace & Co., the Columbia-based chemical maker forced into bankruptcy protection seven years ago by more than 135,000 asbestos injury claims, has filed a reorganization plan with the U.S. Bankruptcy Court in Delaware, the company said yesterday.

The plan to reorganize the company is "consistent" with the terms of a plan announced in April, when Grace agreed to a $1.8 billion settlement to fix the amount of personal injury asbestos claims, the company said in a statement. The plan would preserve more than $1 billion in value for existing shareholders, Grace's official unsecured creditors committee said earlier.

"It's an equitable plan that enjoys widespread support," Grace chief executive Fred Festa said in the statement. "People who have been injured by asbestos exposure will be fairly compensated while employees and shareholders retain control of a financially strong company."

Grace and 61 subsidiaries filed for Chapter 11 bankruptcy protection in April 2001, following the filing of lawsuits over the operation of vermiculite mining and processing operations near Libby, Mont., from 1963 to 1990.

Grace hopes to exit bankruptcy by the end of the year, company officials have said.