W.R. Grace (GRA) Announces Principle Agreement for Plan of Reorganization from Libby, Montana Claimants

W. R. Grace & Co. (NYSE: GRA) announced that agreements in principle have been reached among itself, co-proponents of its joint plan of reorganization, BNSF railroad, several insurance companies and the representatives of Libby asbestos personal injury claimants, to settle objections to the joint plan. The agreements in principle are subject to execution of definitive agreements and approval by the U.S. Bankruptcy Court for the District of Delaware. Pursuant to the agreements, the objections to the joint plan by the Libby claimants and BNSF would be settled, and those parties would forego any further appeals to the plan.

Among the items covered in the agreements is a requirement for Grace to turn the currently Grace-operated Libby Medical Program over to a locally administered trust, and to fund the trust with $19.5 million. Grace began the Libby Medical Program in 2000 and has spent more than $20 million on the health care of the participants over the last 11 years. Once the trust assumes responsibility for the Libby Medical Program, Grace will no longer have any operational, funding, or other responsibility for the program.

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