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W.R. Grace seeks OK on bankruptcy exit loans of up to $1.55B

  • Banks are lined up to provide up to $1.55B worth of loans to W.R. Grace (GRA +0.2%) when the company ends its long stay in bankruptcy at the end of this month, Dow Jones reports.
  • At a Jan. 29 hearing, GRA will seek court authority to enter into the loan commitments along with other final touches on a Chapter 11 restructuring that will remove from the chemical company the threat of billions of dollars worth of liabilities for injuries linked to asbestos.
  • The money will be used to "pay in full all outstanding claims," left at the end of the bankruptcy, such as the $1.1B the company has agreed to pay investors in the bank loans it carried with it into bankruptcy in 2001.
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