U.S. Bankruptcy Judge Judith Fitzgerald has approved a reorganization plan submitted by W.R. Grace that will pave the way for the chemical manufacturer to emerge from bankruptcy protection.
W.R. Grace originally filed for bankruptcy in 2001 after being flooded with around 110,000 lawsuits from people claiming health problems from exposure to W.R. Grace asbestos products. The bankruptcy filing put the lawsuit claims on hold, giving the company time to establish two asbestos trusts for victims and fight what it deemed ungrounded suits.
“She blessed the plan,” Peter A. Chapman, president of Bankruptcy Creditors’ Service, which publishes newsletters about major corporate restructurings, told The Baltimore Sun. “And her blessing is very, very important.”
“This is a reborn company,” Chapman said. “All of the asbestos liabilities are going to be old news. It’s going to be resolved by the trust that’s going to spring to life.”
The plan must still be confirmed in a U.S. District Court.
If you or someone you know has been exposed to asbestos by using certain products or working for certain companies are at serious risk of developing mesothelioma – a rare and aggressive form of cancer. Contact a mesothelioma attorney and learn if pursuing a mesothelioma lawsuit is right for you.