Billy Rose’s Jumbo film On April 7th, W.R. Grace & Co. announced an agreement that will resolve all asbestos claims against the company. This applies to all current claims and any future claims. This action allows the company to emerge from bankrupts without any further asbestos related obligations.The agreement is valued at $3 billion in both cash and equity. The settlement will be allocated into a trust for asbestos victims. W.R. Grace will pay $250 million into the trust initially, and then deferred payments of $110 million per year for five years will begin in 2019. Payments of $100 million per year for 10 years will begin in 2024.
The trust fund will also receive contributions from Sealed Air Corp. and Fresenius Medical Care Corp., which were affiliated with W.R. Grace in the past. Sealed Air Corp. will contribute $1.2 billion and Fresenius Medical Care Corp. will contribute $100 million.
The trust fund will have the right to buy up to 10 million shares of stock at $17 per share during the companies first year out of bankruptcy. All stock profits will be placed in the trust fund.
In 2001, when W.R. Grace filed for bankruptcy, it had been named in about 110,000 asbestos personal injury claims.
Many asbestos related claims against W.R. Grace involve a spray-on fireproofing product that was manufactured by the company.
The agreement must still be approved by a judge. If approved, it does not affect the federal indictment against W.R. Grace and seven executives of the company. They are charged with conspiring to hide the health risks associated with the Libby vermiculite mine.
Dragonslayer movies are currently working on cases that involve serious illness caused by exposure to asbestos.