W.R. Grace finally exits bankruptcy

By Frank Esposito
Senior Staff Reporter

Published: February 5, 2014 12:32 pm ET
Updated: February 5, 2014 12:34 pm ET

Related to this story

Topics Materials, Materials Suppliers

Specialty chemicals firm W.R. Grace & Co. has exited bankruptcy after almost 13 years.

Columbia, Md.-based Grace – which in October paid $500 million for Dow Chemical Co.'s polypropylene licensing and catalyst business – had filed for Chapter 11 bankruptcy in April 2001 because of asbestos-related liabilities.

At the time, Grace was a defendant in almost 66,000 asbestos-related lawsuits. Its corporate bankruptcy was one of the longest in U.S. history.

The firm's joint plan of reorganization took effect on Feb. 3. It establishes two independent trusts – funded with more than $4 billion in cash, stock warrants and other financial measures – to compensate asbestos personal injury claimants and property owners, company officials said in a Jan. 29 news release.

In a Feb. 4 report, analysts with Moody's Investors Service said that although it expects Grace to maintain strong margins and liquidity, the firm "still faces business challenges, such as shareholder demands to return cash."

Asbestos-related financial struggles led Grace to sell its Cryovac-brand plastic films business to Sealed Air Corp. in 1998. In last year's deal with Dow, Grace acquired a PP catalyst plant in Norco, La., as well as customer contracts, licenses, intellectual property and inventory.

On Wall Street, Grace's per-share stock price was under $70 in early 2013 but had improved to almost $96 in late trading Feb. 4.

Grace employs 6,500 worldwide and posted full-year sales of $3.2 billion in 2012.


Comments

W.R. Grace finally exits bankruptcy

By Frank Esposito
Senior Staff Reporter

Published: February 5, 2014 12:32 pm ET
Updated: February 5, 2014 12:34 pm ET

Post Your Comments


Back to story


More stories

Image

Best Places To Work: No. 6, Colors For Plastics

March 4, 2015 12:35 pm ET

Colors For Plastics, which now employs 115 people, started with one man who handled everything.    More

Image

Ineos to combine ABS unit with Styrolution in Americas

March 4, 2015 10:03 am ET

Global materials firm Ineos Group will combine its ABS resin business with its Styrolution unit in the Americas.    More

Image

Obituary: Guido Ghisolfi, PET company executive

March 4, 2015 9:47 am ET

Guido Ghisolfi — a top executive with global PET resin leader Mossi & Ghisolfi Group — has died from an apparent suicide.    More

Image

Bayer to stop MDI production in Brazil

March 4, 2015 9:21 am ET

Bayer AG's Bayer MaterialScience plans to stop production of MDI polyurethane at its plant near Rio de Janeiro in July, removing 55 metric tons per...    More

Image

Best Places To Work: No. 3, Sun Plastech Inc.

March 3, 2015 2:25 pm ET

Sun Plastech Inc., No. 3 on Plastics News' Best Places to Work ranking, offers so many interesting benefits and perks, it's hard to know where to star...    More

Market Reports

Flexible Packaging Trends in North America

North America represents about 30 percent of the global consumption of flexible packaging. Annual growth in this region is forecast at 4 percent during the next 5 years.

For more insight on growth opportunities, drivers of growth and the outlook for 2015, download this report.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Upcoming Plastics News Events

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events