One then quickly remembered that Grace had estimated its asbestos-related claims at a whopping $1.6 billion, after all. Sure enough, it was just another hurdle in Grace's nagging battle with the EPA and asbestos claimants, despite the latest deal being the largest payout in the history of the Superfund program.
The EPA charged Grace in February 2005 with knowingly exposing miners and residents in Libby, Mont., to asbestos. Grace was one of five investment grade companies -- along with Owens Corning, Armstrong World Industries Inc., USG Corp. and Federal-Mogul Corp. -- to file for bankruptcy due to massive asbestos claims. It's the only one out of the group still in bankruptcy. And despite the settlement, it looks like it'll stay in Chapter 11 awhile. The company's debtor-in-possession financing expires on April 1, and it is asking for another two-year extension. Also, while other asbestos-related bankrupts decided to no longer fight in court and come to settlements with claimants, W.R. Grace is sticking to its guns and combatting each asbestos claim. - Terry Brennan
