W.R. Grace's settlements with Massachusetts, Swiss Reinsurance OK'd

By Lisa Kerner

Charlotte, N.C., Jan. 6 - W.R. Grace & Co.'s $15 million settlement resolving tax, post-bankruptcy interest and penalty claims filed by the commissioner of revenue of the Commonwealth of Massachusetts was approved, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the commissioner will be granted a $15 million priority tax claim against W.R. Grace under the settlement, and the company will pay that amount by Jan. 31 to the state in exchange for the commissioner's agreement to a post-bankruptcy interest amount of zero.

The court also approved a settlement with insurers Swiss Reinsurance Co. Ltd. and European Reinsurance Co. of Zurich Ltd., formerly known as European General Reinsurance, according to a second filing on Tuesday.

Under the agreement, Swiss Re will pay $6.75 million to the Asbestos PT Trust within 30 days of the trigger date as provided for in the agreement.

W.R. Grace, a Columbia, Md.-based specialty chemicals company, filed for bankruptcy on April 2, 2001. Its Chapter 11 case number is 01-01139.

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