W.R. Grace Settles Last Appeal Of Chapter 11 Plan

(RTTNews) - Specialty chemicals company W. R. Grace & Co. (GRA) has reached an agreement to settle the final appeal pending in its Chapter 11 bankruptcy with the holders of the company's pre petition bank debt. The settlement agreement calls for Grace to pay the Bank Lenders $129 million, plus interest from December 31, 2013, further to the distributions provided in Grace's Joint Plan of Reorganization.

This settlement agreement is subject to approval by the U.S. Bankruptcy Court for the District of Delaware. Grace's co-proponents of the Joint Plan, including the Official Committee of Equity Security Holders, support the settlement.

The effectiveness of the joint plan is subject to the satisfaction or waiver of several conditions precedent, including the condition that the order confirming the Joint Plan become final and non-appealable. Following the approval of the settlement agreement by the Bankruptcy Court, the Bank Lenders are required to withdraw their appeal, which will result in the satisfaction of such condition.

Grace still targets January 31, 2014 for emergence from Chapter 11.