Grace Files Chapter 11 Bankruptcy Protection.(W.R. Grace & Co.)(Brief Article)

Chemical Market Reporter, April, 2001

UNABLE TO STEM the tide of a nonstop wave of new asbestos claims, W.R. Grace & Co. has filed for bankruptcy under Chapter 11 of the US Bankruptcy Code. The company will continue to operate while reorganizing in bankruptcy court. The filing includes 62 of the company's domestic subsidiaries, but excludes its foreign units.

Grace's filing comes three years after its spin-off as a specialty chemicals entity in April 1998. Hopes were high then as the company had no net debt and manageable asbestos liability.

"We believe the state court system for dealing with asbestos claims is broken, and that Grace cannot effectively defend itself against unmeritorious claims," says CEO Paul J. Norris. "The best forum available to Grace to achieve predictability...

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