W.R. Grace will fund up to $140 million to mesothelioma and other asbestos claimants

Dec 5, 2008

W.R. Grace & Co. will pay up to $140 million over time into a fund for individuals injured by the company’s asbestos-containing Zonolite attic insulation. The road to this plan was paved by an agreement last August that W.R. Grace would resolve asbestos claims against it, enabling it to leave bankruptcy without the shadow of more asbestos-related lawsuits against it.

The agreement requires W.R. Grace to pay $30 million now to fund a trust that would pay asbestos claims. In three years, W.R. Grace will pay an additional $30 million into the trust fund. Over the following ten years, W.R. Grace will make up to 10 more annual payments of $8 million each if conditions of the agreement are met. And the payments are backed by just over half W.R. Grace’s stock.

W.R. Grace’s Zonolite insulation was made of vermiculite, largely from the company’s mine in Libby, Montana. The vermiculite ore was contaminated with asbestos, which caused thousands of Libby residents to develop mesothelioma and other asbestos-related diseases. Zonolite attic insulation was then used in millions of homes in the U.S. and Canada, exposing many more people to asbestos.

Mesothelioma is a particularly insidious asbestos-related cancer because it is very aggressive and can result from short or low levels exposures to asbestos.

For the full story, go to LA Times.

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