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W.R. Grace files Ch. 11
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April 2, 2001: 11:56 a.m. ET
Chemical maker cites rising number of asbestos-related injury claims
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NEW YORK (CNNfn) - Specialty chemical maker W.R. Grace & Co. said Monday it has filed for Chapter 11 bankruptcy protection from creditors due to a rising number of asbestos-related injury claims.
The filing, in U.S. Bankruptcy Court in Wilmington, Del., will allow the company to continue its operations normally, and none of the company's non U.S. subsidiaries is included in the filing.
 The Columbia, Md.-based chemical maker said its is the latest in a handful of U.S. companies to file for bankruptcy protection after damaging asbestos-related lawsuits.
The company, which employs 6,000 people worldwide and generates sales of about $1.6 billion annually, said it had obtained $250 million in financing from Bank of America N.A. and that pending court approval, these funds could be used to continue current operations.
The company also unveiled it plans to work closely with asbestos claimants and other creditors in order to address valid asbestos claims.
Asbestos is a fibrous mineral once commonly used in insulation and fireproofing material. The inhaling of asbestos fibers can cause lung cancer and other deadly respiratory ailments, sometimes decades after the exposure.
Tens of thousands of lawsuits are filed every year by people who claim that their health problems are caused by asbestos.
Shares W.R. Grace (GRA: Research, Estimates) closed Friday's up 6 cents at $2.30.
-- from staff and wire reports 
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