W.R. Grace targets fourth-quarter 2013 Chapter 11 bankruptcy emergence

By Caroline Salls

Pittsburgh, Sept. 10 - W.R. Grace & Co. is aiming for a fourth-quarter 2013 emergence from Chapter 11 bankruptcy, according to a report filed Monday with the Securities and Exchange Commission.

The company said it expects briefs to be filed in the fourth quarter of this year in connection with plan confirmation appeals pending in the Third Circuit Court. Oral arguments are expected to be heard in the first quarter of 2012; and appeal rulings are expected to be received in the third quarter of 2013.

As previously reported, W.R. Grace has been unable to obtain waivers needed to emerge from Chapter 11 bankruptcy before appeals of the plan confirmation order are resolved.

The U.S. Bankruptcy Court for the District of Delaware confirmed Grace's plan in January 2011; and the U.S. District Court for the District of Delaware affirmed the plan in January 2012.

Appeals of both orders are pending before the U.S. Court of Appeals for the Third Circuit.

Grace said in an 8-K filed last week that effectiveness of the plan is subject to the satisfaction or waiver of a number of conditions, including the condition that the plan confirmation order becomes final and non-appealable before the effective date can occur.

Although it continues to believe that the legal and economic benefits of emerging with the appeals outstanding are greater than the benefits of remaining under Chapter 11 protection, the company said it was not able to obtain the necessary waivers after discussions with Sealed Air Corp. and Fresenius Medical Care Holdings, Inc.

In Monday's report, Grace said there are eight appeals pending before the circuit court, with three to be withdrawn upon implementation of the company's Libby settlement.

The company said all of the appeals are based on arguments previously rejected by the bankruptcy court and the district court.

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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