The Associated Press has reported that Monday (April 7, 2008) W.R. Grace & Co. “announced it has reached an agreement to resolve current and future asbestos claims against the company, which would allow it to emerge from bankruptcy without further obligations for asbestos injury.” The settlement is estimated at $3 billion in cash and equity, the AP reports.

W.R. Grace operated the vermiculite mine that is most notably associated with causing asbestos disease, including mesothelioma, in the town of Libby, Montana, affecting generations of residents in that area.

The AP story reports millions of tons of asbestos-contaminated vermiculite ore were shipped from the mine near Libby between 1923 and the early 1990s, reaching more than 250 processing plants across the U.S., where it was used in manufacturing insulation, fireproofing, gardening and other products.

According to the AP report, “Monday’s agreement calls for the company to pay $250 million in cash into a trust fund for asbestos victims, followed by deferred payments of $110 million per year for five years beginning in 2019 and $100 million per year for 10 years beginning in 2024.”

Companies formerly affiliated with Grace, including Sealed Air Corp. and Fresenius Medical Corp., also will contribute to the fund.

When Grace filed for bankruptcy in April 2001, it had been named in 110,000 asbestos personal injury claims. It is not known how many more claims may be filed after the establishment of the trust.

Attorneys representing Libby said settlement amounts for plaintiffs there have yet to be determined, but they expect that each case will depend on the severity of injury resulting from asbestos exposure.

Judge Judith Fitzgerald, who presided over the settlement hearing, must still approve the agreement.

This announcement follows on the heels of an announcement in March that Grace would reimburse the Environmental Protection Agency $250 million for the investigation and asbestos cleanup in Libby.

Read the complete story here, in the Flathead Beacon, which serves Western Montana and the Flathead Valley.

Tags: asbestos, asbestos disease, Environmental Protection Agency, Libby, meso, mesothelioma, Montana, W.R. Grace & Co.

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