Bankruptcy Judge Recommends Approval Of W.R. Grace's Reorganization Plan

WILMINGTON, Del. - (Mealey's) A federal bankruptcy judge in Delaware on Jan. 31 resolved the last objections to W.R. Grace & Co.'s Chapter 11 joint plan of reorganization and recommended that the district court approve the plan (In re:  W.R. Grace & Co., et al., No. 01-1139, D. Del. Bkcy.).

Bankruptcy Judge Judith K. Fitzgerald issued a memorandum opinion in the U.S. Bankruptcy Court for the District of Delaware regarding objections to confirmation of W.R. Grace's first amended joint plan of reorganization in which she overruled all remaining objections to the plan.  She also issued recommended findings of fact, conclusions of law and an order for the U.S. District Court for the District of Delaware to confirm the plan as modified through Dec. 23.

W.R. Grace and 61 related entities (collectively, W.R. Grace) filed for Chapter 11 bankruptcy in 2001.  The debtors filed their first amended joint plan of reorganization on April 22, 2010.  Various parties filed 43 objections to the plan, most of which were resolved or subject to rulings before or during the confirmation hearing; several were the subject of settlement agreements after the hearing ended.

The joint plan was accepted by each class of creditors except Class 9, general unsecured creditors.  However, Class 9 is unimpaired pursuant to Section1124(1) of the Bankruptcy Code, and therefore the provisional vote of the class will have no force and effect.

Asbestos personal injury claimants in Class 6 accepted the joint plan by 99.51 percent in number and 99.39 percent in dollar amount.

[Editor's Note:  Full coverage will be in the February issue of Mealey's Asbestos Bankruptcy Report.  In the meantime, the memorandum opinion and recommended findings of fact and order are available at www.mealeysonline.com or by calling the Customer Support Department at 1-800-833-9844.  Opinion.  Document #48-110228-011Z.  Recommended findings of fact and order. Document #48-110228-012X.  For all of your legal news needs, please visit www.lexisnexis.com/mealeys.] 

Download the documents now:

Mealeysonline.com - Document #48-110228-011Z

Mealeysonline.com - Document #48-110228-012X 

For more information, e-mail editor Emerson Heffner at emerson.heffner@lexisnexis.com.