W.R. Grace & Co., based in Columbia, Md., filed for Chapter 11 bankruptcy protection in 2001 to avoid paying lawsuits filed by people injured by asbestos in the company's products. Kelly Beaudin Stapleton is the U.S. trustee overseeing Grace's Chapter 11 case. Ms. Stapleton has asked the bankruptcy judge to end Grace’s exclusive control over its Chapter 11 case, saying there is no end in sight if the company retains exclusive control.
The company, however, is seeking to retain exclusive control over the case until 90 days after a final court order establishing its asbestos liabilities. Proceedings to determine those liabilities are set to begin in January of 2008. A hearing on Grace's request is scheduled for July 23, 2007. If the court grants the request, creditors would be barred from filing their own reorganization plans on the company's behalf.
Stapleton has joined the company's asbestos-affected creditors in opposing the extension. She said that refusing to grant Grace another exclusivity extension probably would help the parties reach a resolution.