W.R. Grace & Co said that it has settled the only remaining appeal for its chapter 11 plan with a group of bank lenders, paving the way for the U.S. chemicals maker to emerge out of bankruptcy protection after 12 years, Reuters reported today. The company reached a settlement with holders of its pre-petition bank debt, who have been demanding a higher interest rate on their loans, according to a court filing yesterday. Grace will pay the lender group $1.1 billion, comprising $971 million of principal and undisputed interest through Dec. 31, and $129 million in settlements, removing the last remaining obstacle to its emergence out of bankruptcy protection. Grace filed for chapter 11 protection in 2001, making it one of the longest bankruptcies in U.S. history, after an asbestos leak at one of its mines led to a slew of lawsuits.
