W.R. Grace calls Massachusetts claims duplicative

By Jeff Pines

Washington, Aug. 30 - W.R. Grace & Co. said two of the Massachusetts Department of Environmental Protection's three claims in the company's bankruptcy case duplicate the third claim.

W.R. Grace, a Columbia, Md.-based chemical and building products company, filed its objection with the U.S. Bankruptcy Court for the District of Delaware on Friday. It said claims 12848 and 13487 are "exactly the same" claim as 12849.

Claim 12848 was filed against W.R. Grace & Co. Claim 12849 was filed against W.R. Grace & Co.-Conn., and claim 13487 was filed against Grace Energy Corp.

W.R. Grace also wants claim 12849 reduced and reclassified as a pre-petition non-priority claim valued at $78,889.34.

The Department of Environmental Protection wants recovery for oversight, contractor and future remediation costs allegedly owed by W.R. Grace for eight of the company's sites in Massachusetts.

At one of the eight sites, which Grace no longer owns, the existing owner filed a claim against W.R. Grace, so the company believes the state's claim for funds for that site should be cancelled. At the W.R. Grace Plant Superfund site, Massachusetts wants $25 million for future remediation costs, but W.R. Grace said it is already remediating that site as part of an agreement with the Environmental Protection Agency and Massachusetts.

At the Woburn, Mass., site, where the state wants $12 million for future remediation costs, W.R. Grace said it is already repairing the site as part of an agreement with the EPA. At Blackburn & Union Privileges site in Walpole, Mass., W.R. Grace wants the court to reject the state's request for $4 million in future remediation costs because the company does not own the site and it is possible another party, Tyco Healthcare, is responsible for the clean up. Since the Walpole site is a federal superfund site, the state will not be liable for cleaning it up.

An Oct. 25 hearing is scheduled.

W.R. Grace filed for bankruptcy on April 2, 2001. Its Chapter 11 case number is 01-01139.

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