Jul 9, 2007 - MESOTHELIOMA VICTIMS LAWYERS SAY W.R. GRACE & CO. IS STALLING
Lawyers representing clients with claims for asbestos-related diseases, including mesothelioma, asked a judge on Friday, July 6, 2007, to push W.R. Grace & Co. to speed up its bankruptcy restructuring. W.R. Grace & Co. (Grace) was a producer of specialty chemicals that filed for Chapter 11 protection in 2001. Grace has delayed paying victims who filed lawsuits over asbestos products Grace once made.
Grace recently asked the bankruptcy court to push back the deadline for it to file a Chapter 11 plan until 90 days after proceedings to estimate its asbestos liabilities are final. Those proceedings won't even begin until January 2008. Therefore, a lengthy delay in paying settlements would result. Asbestos victimss said Friday that coming up with the asbestos-damage estimate could take until 2010, and they don't want to wait that long.
The asbestos-damage figure is a major issue for Grace's reorganization plan, since it must set aside enough cash or equity to cover asbestos claims before it can get out of bankruptcy. In asking for a delay, Grace said it has worked hard to come up with a reasonable resolution to its asbestos troubles.
The victims’ lawyers disagree. They say Grace is just trying to delay, and the company has no incentive to enter into any negotiation. They are also asking that Chapter 11 confirmation hearings begin soon, to head off years of potential delay.