=================================================================== W.R. GRACE BANKRUPTCY NEWS Issue Number 1 ------------------------------------------------------------------- Copyright 2001 (ISSN XXXX-XXXX) April 3, 2001 ------------------------------------------------------------------- Bankruptcy Creditors' Service, Inc., 609-392-0900 FAX 609-392-0040 ------------------------------------------------------------------- W.R. GRACE BANKRUPTCY NEWS is published by Bankruptcy Creditors' Service, Inc., 24 Perdicaris Place, Trenton, New Jersey 08618, On an ad hoc basis (generally every 10 to 20 days) as significant activity occurs in the Debtors' chapter 11 cases. Each issue is prepared by Peter A. Chapman, Editor. Subscription rate is US$45 per issue. Reproduction or e-mail redistribution of W.R. GRACE BANKRUPTCY NEWS is prohibited without permission. =================================================================== IN THIS ISSUE ------------- [00001] BACKGROUND & DISCRIPTION OF W.R. GRACE & CO. [00002] CONSOLIDATED BALANCE SHEET AS OF SEPTEMBER 30, 2000 [00003] COMPANY'S PRESS RELEASE CONCERNING CHAPTER 11 FILING [00004] DEBTORS' CHAPTER 11 DATABASE [00005] LISTING OF THE DEBTORS' 20 LARGEST UNSECURED CREDITORS [00006] DEBTORS' MOTION FOR JOINT ADMINISTRATION OF PROCEEDINGS [00007] COMPANY'S RESPONSES TO FREQUENTLY ASKED QUESTIONS KEY DATE CALENDAR ----------------- 04/02/01 Voluntary Petition Date 04/17/01 Deadline for filing Schedules of Assets and Liabilities 04/17/01 Deadline for filing Statement of Financial Affairs 04/17/01 Deadline for filing Lists of Leases and Contracts 04/22/01 Deadline to provide Utilities with adequate assurance 06/01/01 Deadline to make decisions about lease dispositions 07/01/01 Deadline to removal actions pursuant to F.R.B.P. 9027 07/31/01 Expiration of Debtors' Exclusive Plan Proposal Period 09/29/01 Expiration of Debtors' Exclusive Solicitation Period 04/02/03 Deadline for Debtors' Commencement of Avoidance Actions Organizational Meeting with UST to form Committees Bar Date for filing Proofs of Claim First Meeting of Creditors pursuant to 11 USC Sec. 341 ------------------------------------------------------------------- [00000] HOW TO ORDER A SUBSCRIPTION TO W.R. GRACE BANKRUPTCY NEWS ------------------------------------------------------------------- W.R. GRACE BANKRUPTCY NEWS is distributed to paying subscribers by electronic mail. New issues are published on an ad hoc basis as significant activity occurs (generally every 10 to 20 days) in the Debtors' chapter 11 cases. The subscription rate is $45 per issue. Newsletters are delivered via e-mail; invoices, transmitted with each newsletter issue, arrive by fax. Distribution to multiple individuals at the same firm is provided at no additional charge; folks outside of your firm should set-up and pay for their own subscriptions. Subscriptions may be canceled at any time without further obligation. To continue receiving W.R. GRACE BANKRUPTCY NEWS, please complete the form below and return it by fax or e-mail to: Bankruptcy Creditors' Service, Inc. 24 Perdicaris Place Trenton, NJ 08618 Telephone (609) 392-0900 Fax (609) 392-0040 E-mail: peter@bankrupt.com We have published similar newsletters tracking billion-dollar insolvency proceedings since 1990. Currently, we provide similar coverage about the chapter 11 cases involving Owens Corning, Armstrong World Industries, LTV, Wheeling-Pittsburgh, Safety-Kleen, Bridge Information Services, ICG Communications, Lernout & Hauspie & Dictaphone, Fruit of the Loom, Pillowtex, Imperial Sugar, Vlasic Foods, The Loewen Group International, Inc., Harnischfeger Industries, Inc., Vencor, Inc., Sun Healthcare Group, Inc., Mariner Post-Acute & Mariner Health, and Integrated Health Services. =================================================================== [ ] YES! Please enter my personal subscription to W.R. GRACE BANKRUPTCY NEWS. Name: ---------------------------------------------- Firm: ---------------------------------------------- Address: ---------------------------------------------- ---------------------------------------------- Phone: ---------------------------------------------- Fax: ---------------------------------------------- E-Mail: ---------------------------------------------- ------------------------------------------------------------------- [00001] BACKGROUND & DISCRIPTION OF W.R. GRACE & CO. ------------------------------------------------------------------- W.R. GRACE & CO. 7500 Grace Drive Columbia, MD 21044 Telephone (410) 531-4000 Fax (410) 531-4367 http://www.grace.com W.R. Grace & Co. is a two-part business with six product lines: 1999 Sales Percentage ---------- ---------- (A) Davison Chemicals Refining Catalysts $406,300,000 28% Chemical Catalysts 112,100,000 8% Silica Products 205,900,000 14% -------------- ---- $724,300,000 49% -------------- ---- (B) Performance Chemicals Construction Chemicals $302,700,000 21% Building Materials 210,500,000 14% Container Products 234,400,000 16% -------------- ---- $747,600,000 51% -------------- ---- $1,471,900,000 100% ============== ==== Davison Chemicals manufactures catalysts, including: (1) fluid cracking catalysts and additives used by petroleum refineries to convert distilled crude oil into transportation fuels and other petroleum-based products; (2) hydroprocessing catalysts that upgrade heavy oils and remove certain impurities; and (3) polyolefin catalysts and catalyst supports that are essential components in the manufacture of high density and linear low density polyethylene resins used in products such as plastic film, high-performance plastic pipe and plastic household containers. Davison Chemicals also manufactures silica and zeolite adsorbents which are used in a wide variety of industrial and consumer applications, such as plastics, toothpastes, paints and insulated glass, as well as in the refining of edible oils. Performance Chemicals produces: (1) specialty construction chemicals, including performance- enhancing concrete admixtures, cement additives and masonry products; (2) specialty building materials, including fireproofing and waterproofing materials and systems; and (3) container and closure sealants that protect food and beverages from bacteria and other contaminants, extend shelf life and preserve flavor, and coatings used in the manufacture of cans and closures. Grace operates manufacturing and other types of plants and facilities (including office and other service facilities) throughout the world, employing some 6,300 full-time workers. Some plants and facilities are shared by more than one Grace business unit, and since the disposition of the Packaging Business, some plants and facilities are shared with Sealed Air Corporation. ------------------------------------------------------------------- [00002] CONSOLIDATED BALANCE SHEET AS OF SEPTEMBER 30, 2000 ------------------------------------------------------------------- W. R. GRACE & CO. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET SEPTEMBER 30, 2000 ASSETS CURRENT ASSETS Cash and cash equivalents ................ $145,700,000 Notes and accounts receivable, net ....... 200,700,000 Inventories ............................. 137,200,000 Deferred income taxes .................... 95,700,000 Asbestos-related insurance expected to be realized within one year ........ 62,200,000 Other current assets ..................... 60,500,000 -------------- TOTAL CURRENT ASSETS ..................... 702,000,000 Properties and equipment, net of accumulated depreciation and amortization of $909,000,000 .......... 598,300,000 Goodwill, less accumulated amortization of $7,300,000 ............ 33,000,000 Cash value of life insurance policies, net of policy loans ................... 104,900,000 Deferred income taxes .................... 325,300,000 Asbestos-related insurance expected to be realized after one year ......... 253,700,000 Other assets ............................. 387,700,000 -------------- TOTAL ASSETS ........................ $2,404,900,000 ============== LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Short-term debt .......................... $49,400,000 Accounts payable ......................... 117,800,000 Income taxes payable ..................... 122,500,000 Asbestos-related liability expected to be satisfied within one year ....... 168,600,000 Other current liabilities ................ 256,900,000 -------------- TOTAL CURRENT LIABILITIES ........... 715,200,000 Long-term debt ........................... 258,400,000 Deferred income taxes .................... 20,200,000 Asbestos-related liability expected to be satisfied after one year ........ 729,300,000 Other liabilities ........................ 568,200,000 -------------- TOTAL LIABILITIES ................... $2,291,300,000 -------------- COMMITMENTS AND CONTINGENCIES SHAREHOLDERS' EQUITY Common stock issued, par value $.01; 300,000,000 shares authorized; 65,403,000 shares outstanding ......... 800,000 Paid in capital .......................... 431,900,000 Accumulated deficit ...................... (33,800,000) Deferred compensation trust .............. (800,000) Treasury stock, at cost: 11,443,900 common shares .............. (136,400,000) Accumulated other comprehensive loss .... (148,100,000) -------------- TOTAL SHAREHOLDERS' EQUITY .......... 113,600,000 -------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY ............. $2,404,900,000 ============== ------------------------------------------------------------------- [00003] COMPANY'S PRESS RELEASE CONCERNING CHAPTER 11 FILING ------------------------------------------------------------------- W.R. GRACE & CO. FILES VOLUNTARY CHAPTER 11 PETITION TO RESOLVE ASBESTOS CLAIMS OLUMBIA, Maryland -- April 2, 2001 -- W. R. Grace & Co. (NYSE: GRA) today announced that the Company has voluntarily filed for reorganization under Chapter 11 of the United States Bankruptcy Code in response to a sharply increasing number of asbestos claims. This Chapter 11 filing includes 61 of Grace's domestic entities. None of the Company's foreign subsidiaries are included in this filing. The filing, made today in the U.S. Bankruptcy Court in Wilmington, Delaware, will enable the Company to continue to operate its businesses in the usual manner under court protection from its creditors and claimants, while using the Chapter 11 process to develop and implement a plan for addressing the asbestos-related claims against it. The Company intends to work closely with asbestos claimants and other creditors to develop a plan of reorganization that will both address valid asbestos claims in a fair and consistent manner and establish a sound capital structure for long-term growth and profitability. The Company also announced that it has obtained $250 million in debtor-in-possession financing from Bank of America, N.A.. Following the court's approval, the Company can use these funds to help meet the future needs and obligations associated with operating its business, including payment under normal terms to suppliers and vendors for all goods and services that are provided after today's filing. The Company expects that employees will continue to be paid in the normal manner, and their benefits will not be disrupted. The Company's qualified pension plan for retirees and vested current and former employees is fully funded and protected by federal law. Grace's Chairman, President, and Chief Executive Officer Paul J. Norris said, "This is a voluntary decision that, although very difficult, was absolutely necessary for us. We believe that the state court system for dealing with asbestos claims is broken, and that Grace cannot effectively defend itself against unmeritorious claims. The best forum available to Grace to achieve predictability and fairness in the claims settlement process is through a federal court-supervised Chapter 11 filing. By filing now, we are able to both obtain a comprehensive resolution of the claims we are facing and preserve the inherent value of our businesses. Under Chapter 11, litigation will be stayed and Grace will be able to address all of the valid claims against it in a fair and consistent manner in one proceeding. In the meantime, we will continue to operate our business in the usual manner, meeting all of our responsibilities to customers, employees, suppliers, and business partners. There is no other forum currently existing that would allow us to accomplish all of these objectives." Mr. Norris continued, "Until recently, Grace was able to settle claims through direct negotiations. The filings of claims had stabilized, and annual cash flows were manageable and fairly predictable. In 2000, the litigation environment changed with an unexpected 81% increase in claims, which we believe is due to a surge in unmeritorious claims. Trends in case filings and settlement demands, which show no signs of returning to historic levels, have increased the risk that Grace will not be able to resolve its pending and future asbestos claims under the current system." "Moreover, the recent Chapter 11 filings of Babcock & Wilcox, Pittsburgh-Corning, Owens Corning, Armstrong, and GAF are resulting in a significant increase in damages sought by claimants from Grace. Grace will now seek, through the court-supervised Chapter 11 process, to identify and implement a reasonable and just procedure for making payments to creditors and claimants determined to have valid claims against the Company." Mr. Norris added that, "Grace is a fundamentally sound company with strong cash flow. We have a clear leadership position in all of our major markets, many of them in industries vital to the economy. Over the past several years, the senior management and employees together have led the Company to many significant achievements, including streamlining the Company's operations and driving growth and productivity through our strategic growth initiatives and Six Sigma." "We are confident that, once we can finally resolve this difficult issue, the Company can leverage its inherent value and strong cash flow to emerge from reorganization as a strong, financially sound enterprise. In the meantime, we will operate as we always have, providing premier quality products and customer service. We urge Congress to pass legislation to address what the Supreme Court has described as an 'elephantine mass of asbestos cases' that defies customary judicial administration." Grace's asbestos liabilities largely stem from commercially purchased asbestos added to some of its fire protection products. The Company ceased to add any asbestos to its products in 1973. Grace is a co-defendant with many other companies in asbestos litigation, and has claims filed against it across the country. The Company to date has received over 325,000 asbestos personal injury claims, and has paid $1.9 billion to manage and resolve asbestos- related litigation. For the year 2000, asbestos-related claims against the Company were up 81% from the prior year with even higher increases for the first three months of 2001. Five other major companies involved in asbestos-related litigation have voluntarily filed for Chapter 11 under the US Bankruptcy Code since January 1, 2000, bringing the total to 26 companies since 1982. In light of the Chapter 11 filing, Grace's Annual Meeting of Stockholders, scheduled for May 10, 2001, has been cancelled. Grace is a leading global supplier of catalysts and silica products, specialty construction chemicals and building materials, and container products. With annual sales of approximately $1.6 billion, Grace has over 6,000 employees and operations in nearly 40 countries. For more information, visit Grace's web site at http://www.grace.com or call the Grace Financial Reorganization hotline at 1-800-472-2399 (for international calls use your in- country AT&T Direct Access Number). ------------------------------------------------------------------- [00004] DEBTORS' CHAPTER 11 DATABASE ------------------------------------------------------------------- Lead Debtor: W. R. GRACE & CO., a Delaware Corporation Debtor Affiliates filing separate chapter 11 petitions: State of Subsidiary's Name Incorporation ----------------- ------------- A-1 Bit & Tool Co., Inc. DE Alewife Boston Ltd. MA Alewife Land Corporation MA Amicon, Inc. DE CB Biomedical, Inc. DE CCHP, Inc. DE Coalgrace, Inc. DE Coalgrace II, Inc. DE Creative Food 'N Fun Company DE Darex Puerto Rico, Inc. DE Del Taco Restaurants, Inc. DE Dewey and Almy, LLC DE Ecarg, Inc. NJ Five Alewife Boston Ltd. MA G C Limited Partners I, Inc. DE G C Management, Inc. DE GEC Management Corporation DE GN Holdings, Inc. DE GPC Thomasville Corp. DE Gloucester New Communities Company, Inc. NJ Grace A-B Inc. DE Grace A-B II Inc. DE Grace Chemical Company of Cuba IL Grace Culinary Systems, Inc. MD Grace Drilling Company DE Grace Energy Corporation DE Grace Environmental, Inc. DE Grace Europe, Inc. DE Grace H-G Inc. DE Grace H-G II Inc. DE Grace Hotel Services Corporation DE Grace International Holdings, Inc. DE Grace Offshore Company LA Grace PAR Corporation DE Grace Petroleum Libya Incorporated DE Grace Tarpon Investors, Inc. DE Grace Ventures Corp. DE Grace Washington, Inc. DE W. R. Grace Capital Corporation NY W. R. Grace & Co.-Conn. CT W. R. Grace Land Corporation NY Gracoal, Inc. DE Gracoal II, Inc. DE Guanica-Caribe Land Development Corporation DE Hanover Square Corporation DE Homco International, Inc. DE Ichiban Chemical Co., Inc. DE Kootenal Development Company ?? L B Realty, Inc. DE Litigation Management, Inc. DE Monolith Enterprises, Incorporated DC Monroe Street, Inc. DE MRA Holdings Corp. DE MRA Intermedco, Inc. DE MRA Staffing Systems, Inc. DE Remedium Group, Inc. DE Southern Oil, Resin & Fiberglass, Inc. FL Water Street Corporation DE Axial Basin Ranch Company ?? CC Partners ?? Hayden-Gulch West Coal Company ?? H-G Coal Company ?? Bankruptcy Case Nos.: 01-1139 through 01-1200, inclusive Petition Date: April 2, 2001 Court: United States Bankruptcy Court District of Delaware Marine Midland Plaza Building 824 Market Street Wilmington, Delaware 19801 Judges: The Honorable Randall J. Newsome, Visiting Judge The Honorable Peter J. Walsh, Chief Judge Circuit: Third Debtors' Lead Counsel: James H.M. Sprayregen, Esq. Kirkland & Ellis 200 East Randolph Drive Chicago, IL 60601 Telephone 312/861-2000 Fax 312/861-2200 Debtors' Local Counsel: Laura Davis Jones, Esq. Pachulski, Stang, Ziehl, Young & Jones PC 919 North Market Street, 16th Floor Wilmington, DE 19899-8705 Telephone 302/652-4100 Debtors' Corporate Counsel: Wachtell, Lipton, Rosen & Katz Debtors' Financial Advisor: Blackstone Group, L.P. Debtors' Accounting Firm: PricewaterhouseCoopers LLP Debtors' Public Relations Consultant: Kekst & Company U.S. Trustee: Office of the United States Trustee for Region III Curtis Center, 9th Floor West 901 Walnut Street Philadelphia, PA 19106 Telephone (215) 597-4411 Debtor's Reported Financial Condition as of February 28, 2001: Total Consolidated Assets: $2,509,056,000 Total Consolidated Liabilities: $2,574,887,000 ------------------------------------------------------------------- [00005] LISTING OF THE DEBTORS' 20 LARGEST UNSECURED CREDITORS ------------------------------------------------------------------- Entity Nature Of Claim Claim Amount ------ --------------- ------------ The Chase Manhattan Bank Bank Debt $ 253,489,503 270 Park Avenue New York, NY 10017 Contact: Lawrence Palumbo Phone:(212)270-7525 Fax:(212)270-7939 The Chase Manhattan Bank Bank Debt $ 250,000,000 270 Park Avenue New York, NY 10017 Contact: Lawrence Palumbo Phone:(212)270-7525 Fax:(212)270-7939 The Depository Trust Public Bond $ 5,740,848 Company 55 Water Street New York, NY 10042 CEDE & Co. Public Bonds $ 2,035,675 P.O. Box 20 Bowling Green Station New York, NY 10274 Contact: Daniel Chipko Phone:(212)250-6519 Fax:(212)250-6961 Los Angeles Unified Litigation $ 1,900,000 School District Settlement Contact: Robins Kaplan Miller Ciresi c/o Roman Siberfeld 2049 Century Park East #3700 Los Angeles, CA 90067 Huntsman Corporation Trade $ 668,941 P.O. Box 65888 Charlotte, NC 28265 Phone:(713)235-6185 Fax:(713)235-6414 Zhagrus Environmental, Inc. Trade $ 439,287 46 W Broadway, Ste. 130 Salt Lake City, UT 84101 Contact: Susan Rice Phone:(801)595-0239 Fax:(801)595-8805 DCP Lohja Inc. Trade $ 305,243 P.O. Box 2501 Carol Stream, IL 60132-2501 Contact: William McBain Phone:(630)734-2713 Fax:(630)734-2690 PCS Nitrogen Fertilizer, LP Trade $ 284,861 P.O. Box 71029 Chicago, IL 60694-1029 Contact: John Hill Phone:(706)849-6100 Fax:(706)849-6111 Dupont Dow Elastomers Trade $ 260,740 21088 Network Place Chicago, IL 60673-1210 Contact: Rick Thomas Phone:(800)853-5515 Fax:(302)234-6238 Cass Logistics Temporary Trade $ 251,192 900 Chelmaford Street Lowell, MA 08510 Contact: Ann-Margaret Bushnell Phone:(978)323-6769 Fax:(978)323-6625 Union Carbide Corp. Trade $ 228,044 Southern Ionics, Inc. Trade $ 178,147 BASF Trade $ 168,149 CNA Insurance Divestment $ 162,000 Liability Radian International Trade $ 159,863 Stone Packaging System Trade $ 138,998 Valeron Strength Films Trade $ 129,223 Ingersoll-Rand Fluid Trade $ 121,132 Products Delta Chemicals Trade $ 119,962 ------------------------------------------------------------------- [00006] DEBTORS' MOTION FOR JOINT ADMINISTRATION OF PROCEEDINGS ------------------------------------------------------------------- The Debtors ask, pursuant to Rule 1015(b)(4) of the Federal Rules of Bankruptcy Procedure, that the Court order their chapter 11 cases be jointly administered. Administration of one bankruptcy case on the Court's dockets, James H.M. Sprayregen, Esq., at Kirkland & Ellis explains, will reduce costs and facilitate a more efficient administrative process, unencumbered by the procedural problems otherwise attendant to the administration of multiple chapter 11 cases. Laura Davis Jones, Esq., from Pachulski, Stang, Ziehl, Young & Jones PC, notes that Grace's foreign subsidiaries are excluded from these filings and are not expected to file; they continue operating with their normal business practices and financial obligations. Judge Walsh directs that the Debtors' chapter 11 cases be consolidated, solely for administrative purposes, and that all pleadings and papers be captioned: UNITED STATES BANKRUPTCY COURT DISTRICT OF DELAWARE In re: : : Chapter 11 W.R. GRACE & CO., et al. : : Case No. 01-1139 (PJW) Debtors. : (Jointly Administered) At the First Day Hearing, Judge Walsh made it clear that his order neither contemplates a substantive consolidation of the Debtors' estates nor prejudices the right of any party-in-interest to seek a substantive consolidation of the Debtors' estates. ------------------------------------------------------------------- [00007] COMPANY'S RESPONSES TO FREQUENTLY ASKED QUESTIONS ------------------------------------------------------------------- 1.) What is Chapter 11? What happens during Chapter 11? A voluntary Chapter 11 filing is an action taken by a US-based company to resolve financial problems, such as a lack of liquidity or excessive debt. During a Chapter 11 proceeding, the company financially reorganizes so that it can meet the financial claims of those to whom it owes money. A Chapter 11 filing immediately stops all lawsuits against a company and, through a legal mechanism known as the "automatic stay," prevents creditors from taking action against the company to collect any monies or property they are owed. Chapter 11 provides a process to for a company to resolve financial difficulties and then emerge as a more viable business with its operations intact. A number of companies have successfully gone through this process, including such well-known enterprises as Continental Airlines, US Airways, Toys 'R' Us, Macy's, and Bloomingdale's, among others. Under a Chapter 11 proceeding, a company continues to provide employees with salaries and benefits. It is also able to do business with suppliers and customers in a routine manner so that it can continue to create value to satisfy creditors. The Chapter 11 process will end when the court has approved a plan of reorganization for the company. This plan is usually developed by the company in conjunction with its creditors. When the court approves the company's plan of reorganization, the company is said to "come out" or "emerge" from Chapter 11 as a reorganized company. 2.) Why are we filing for Chapter 11? Unlike many other companies that file for Chapter 11, Grace has strong cash flow and is a leader in all of its major markets. The Company is voluntarily filing for Chapter 11 in response to a sharply increasing number of asbestos claims, many of them unmeritorious. Grace believes that the state court system for dealing with asbestos claims is broken, and that Grace cannot effectively defend itself against unmeritorious claims. The best forum available to Grace to achieve predictability and fairness in the claims settlement process is through a federal court-supervised Chapter 11 filing. Grace will seek, through the court-supervised Chapter 11 process, to identify and implement a reasonable and just procedure for making payments to actual creditors and claimants determined to have valid claims against the company. The Chapter 11 process will allow Grace to continue to operate as usual in meeting its responsibilities to customers, employees, suppliers, and business partners and will protect those persons who continue to work for and do business with Grace. 3.) Why are we filing for Chapter 11 now? By filing now, Grace is best able to preserve the value of its businesses. Under Chapter 11, litigation will be stayed and Grace will be able to address all of the valid claims against it in a fair and consistent manner in one proceeding. 4.) Why didn't management have a better understanding that this could happen? Our objective from the outset has been to provide fair compensation to individuals impaired by our product while managing our business in the best interests of our shareholders, customers, and employees. Prior to April 2000, our financial planning regarding asbestos liabilities had been quite accurate. Claims against the Company were manageable until a sudden and dramatic 81% leap in claims filed against the Company in 2000 with an even higher increase in the first quarter of 2001. This high level of claims against the Company stems from a combination of factors that would have been difficult to predict or manage, including the fast rising number of unmeritorious claims from unimpaired parties, as well as the increased settlement demands from claimants directed to Grace, as a result of Chapter 11 filings by other companies being sued for asbestos liabilities, notably, Pittsburgh-Corning, Babcock & Wilcox, Owens Corning, Armstrong, and GAF. All of this has increased the probability that we will not be able to meet our obligations in the future. 5.) Is Grace going out of business? Grace is open for business. It is continuing to invest in its businesses, fund research and development initiatives, drive productivity and service its customers. 6.) How does the Chapter 11 filing affect the company's international operations? It only affects the U.S. businesses. No businesses outside the U.S. are impacted. 7). What will happen to Grace's stock? It will continue to be traded on the NYSE as long as it continues to meet listing standards. Value will be determined by the market. Any additional questions should be referred to your own financial advisor. 8). What if I still have questions? Please call 1-800-472-2399 (for international calls use your in-country AT&T Direct Access Number). *** End of Issue No. 1 *** ------------------------------------------------------------------------- Peter A. Chapman peter@bankrupt.com http://bankrupt.com ------------------------------------------------------------------------- Recommended Reading: "Debtors and Creditors in America: Insolvency, Imprisonment for Debt, and Bankruptcy, 1607 - 1900." You'll learn things about bankruptcy you never knew. Order your copy of this title today at http://www.amazon.com/exec/obidos/ASIN/189312214X/internetbankrupt -------------------------------------------------------------------------