W.R. Grace Settles Asbestos Claims

Grace, a specialty chemical company under Chapter 11 protection since 2001, reached agreements with eight creditors including the Port of Seattle, the state of Washington and the Catholic Diocese of Little Rock, Ark.

The U.S. Bankruptcy Court in Wilmington, Del., will consider the settlements at a Nov. 26 hearing.

According to court documents filed Monday, Grace denied any wrongdoing in the asbestos cases but said it agreed to settle "because it is in the best interest of its Chapter 11 estates to avoid further expense, inconvenience and the distraction of expensive, burdensome and protracted litigation over the claims' merit and value."

The settlements come nearly three months after the bankruptcy court ruled in favor of asbestos claimants, who had sought to speed up the claims resolution process.

In July, the court ended Grace's exclusive right to file a Chapter 11 reorganization plan, which outlines how creditors -- including the asbestos claimants -- will be repaid.

Under the settlements, the Port of Seattle would receive the largest claim at $14.5 million, followed by the state of Washington's at just over $2 million, and the Fargo Housing and Redevelopment Authority's would get about $810,000.

Other claimants include CHP Associates of Cherry Hill, N.J., the Church of the Most Holy Redeemer in Montgomery, Minn., the Church of St. Helena in Minneapolis, and the American Legion of Fargo, N.D.

The agreement requires that the claims be paid within 30 days after the bankruptcy court approves Grace's reorganization plan. Grace will either pay the claims from its bankruptcy estate or through an asbestos trust fund.

W.R Grace, based in Columbia, Md., filed for bankruptcy after racking up millions of dollars in asbestos liabilities and more than 135,000 asbestos-related lawsuits.

Grace has estimated its asbestos liabilities at $1.3 billion, while claimants say the figure is as high as $5 billion.