WR Grace Files Chapter 11, Royal Family Protests
Rarely does a common business bankruptcy have all the mystery and international intrigue of a thriller spy novel, but one that was recently highlighted in the Wall Street Journal comes close. W. R. Grace and Company has a long and fascinating history.
William Russell Grace left Ireland during the potato famine to work harvesting guano in Peru. These bird and bat droppings were turned into fertilizer and gunpowder. His brothers began entrepreneurial ventures in America and London, but by the end of the 1800s, the brothers consolidated most of their holdings and the business passed on to their heirs.
In 1954, W. R. Grace Co. bought a chemical company. Within a decade, it was acquiring major shares of Miller Brewing, only to resell them to Phillip Morris three years later at a whopping profit. In 1987, it became the first foreign company to do business in the People's Republic of China when it opened a canning factory in Shanghai.
But along with the company's phenomenal growth have come the equally large allegations of corporate crimes and the accompanying lawsuits. The company faced more than 270,000 lawsuits related just to asbestos. After the number of asbestos injury lawsuits unexpectedly skyrocketed, the company filed for bankruptcy protection in 2001.
Now, ten years later, the WSJ reports that an appeal has been filed by “Her Majesty the Queen.” Apparently W.R. Grace & Co. made asbestos-laden Zonolite attic insulation that was installed in housing on Canada's military bases. When a U.S. bankruptcy judge gave his approval of Grace’s Chapter 11 bankruptcy plan, the Canadian government made its appeal, thus invoking the Queen's name in claiming that the asbestos claims payouts would not be fair.
A small businessman who is contemplating filing for bankruptcy may not have to contend with the Queen of England, and he may not have debts as great as the estimated $3 billion worth of bills that W.R. Grace & Co. is facing, but he will still need a capable bankruptcy lawyer. Because of downturns in the economy over the past few years, bankruptcies have become more common. Most do not meet the scope of these asbestos claims, but they can still be equally devastating to the individuals involved.
A Chapter 11 bankruptcy reorganizes a business's financial plan and debt structure to provide protection to debtors. Because of the complexity of reorganizing to stay in business, having a knowledgeable bankruptcy lawyer is imperative.
Unlike a "going out of business" or personal bankruptcy which may be completed within a few months, the Chapter 11 business bankruptcy may continue for quite some time. If you are facing financial hardship, let a Florida Bankruptcy Lawyer help you evaluate your personal situation and give you some real answers.
Click on the following link to read more:
‘Her Majesty’ Protests W.R. Grace’s Chapter 11 Plan
Brian F. LaBovick, Esq.
Esther Uria LaBovick, Esq.
Mark R. Hanson, Esq.
Joseph R. Fields Jr., Esq.
Marcie Dodson, J.D.