WR Grace Loses Sole Control of Chpt 11
From Forbes:
PHILADELPHIA -
A bankruptcy judge on Thursday cut off W.R. Grace & Co.'s exclusive control of its bankruptcy case, opening up the possibility of competing Chapter 11 proposals for the specialty chemical company.
In a three-page order, Judge Judith Fitzgerald of the U.S. Bankruptcy Court in Wilmington, Del., granted a motion by lawyers for asbestos claimants, who said the threat of a rival Chapter 11 plan could push Grace to the bargaining table.
Daunting asbestos liabilities pushed W.R. Grace into Chapter 11 bankruptcy in 2001. The company said it had made progress in dealing with its asbestos troubles, and should hold on to the exclusive right to propose an outcome to its case.
"Termination of exclusivity will facilitate moving the case toward conclusion by changing the dynamics for negotiation while permitting (Grace) to continue to operate their business, resolve claims and participate in negotiations," the judge wrote.
Grace's bankruptcy proceedings have been characterized by extensive litigation over the company's asbestos liabilities. A court-ordered attempt to mediate a deal with asbestos claimants failed last year, and asbestos lawyers complain Grace has not been willing to talk.
The Columbia, Md.-based company's lawyers say they have been engaged in extensive talks with asbestos creditors.
PHILADELPHIA -
A bankruptcy judge on Thursday cut off W.R. Grace & Co.'s exclusive control of its bankruptcy case, opening up the possibility of competing Chapter 11 proposals for the specialty chemical company.
In a three-page order, Judge Judith Fitzgerald of the U.S. Bankruptcy Court in Wilmington, Del., granted a motion by lawyers for asbestos claimants, who said the threat of a rival Chapter 11 plan could push Grace to the bargaining table.
Daunting asbestos liabilities pushed W.R. Grace into Chapter 11 bankruptcy in 2001. The company said it had made progress in dealing with its asbestos troubles, and should hold on to the exclusive right to propose an outcome to its case.
"Termination of exclusivity will facilitate moving the case toward conclusion by changing the dynamics for negotiation while permitting (Grace) to continue to operate their business, resolve claims and participate in negotiations," the judge wrote.
Grace's bankruptcy proceedings have been characterized by extensive litigation over the company's asbestos liabilities. A court-ordered attempt to mediate a deal with asbestos claimants failed last year, and asbestos lawyers complain Grace has not been willing to talk.
The Columbia, Md.-based company's lawyers say they have been engaged in extensive talks with asbestos creditors.
Labels: Asbestos
posted by David Stone | 9:36 AM
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