Good morning,Today the Wall Street Journal reported, in its online edition, W.R. Grace & Co. is considering filing for Chapter 11 bankruptcy protection as asbestos-related injury suits rise. W.R. Grace, which is based in Columbia, Md., said asbestos-related claims rose 81 percent in 2000 and it was also considering going through the courts to settle the litigation, the paper said, citing an interview with Chief Executive Paul Norris. To see the entire story click on the news link @ the top of this page.Best wishes,Spirit
Hello,I have one question, if they do file Chapter 11, What happens to the existing shares? (besides the market drops) I am assuming that GRA would be consolidating shares?Thanks.John
Hello John,You asked; I have one question, if they do file Chapter 11, What happens to the existing shares? (besides the market drops) I am assuming that GRA would be consolidating shares?Chapter 11 is a bankruptcy option in which a trustee is appointed to reorganize the firm. Althought the existing claims of secuirty holders are likely to be reduced or replaced with different claims, it is epected that firm will continue operating. Both creditors and owners must approve the plan before the reorganiztion can be confimed by court action and becomes effective. Chapter 11 bankrupticies do not always result from buiness insolvency either. These asbestos claims against WC Grace seems to be forcing its hand to do something to get all these lawsuits consolidated and settled rather than having claims dribbling on and on for many years.Watch the news on the stock..more information should be coming along soon. ( the news link is at the top of this page)Best wishes,Spirit
What do you think about the Motley Fool's revised snapshot numbers for GRA?Like........."Ouch".Nothing like an open ended liability to siphon off shareholder equity in hurry.Looks like the asbestos monkey on their back is now an 800 lbs. gorilla.
News reports state analysts puzzled over increased asbestos litigation. Once again, the market over-reacts. I for one am greatful for the renewed buying opportunity of a grossly undervalued stock of a sound and strong company.
Yeah. Nothing like out of control litigation from "ambulance chaser scumbag lawyers" to ruin a good company. Can you say Tort Reform?
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