Asbestos,WR Grace-When Will it Emerge from Bankruptcy

Implications: Criminal indictments may be slowing the reorganization plan.
EPA findings may increase company's exposure.
Estimation hearings need to be advanced and be binding.
USG & Owens results help WR. Grace.
Stock prices on the rise despite adverse court rulings.

Analysis:     The trial on the criminal indictments of 7 key people who were involved with WR Grace was recently moved to September 2007 and is likely to proceed thru February 2008.  Two key rulings have been appealed by the prosecution relative to the statute of limitations on a conspiracy count and the barring of certain scientific analysis.  One wonders whether many class action firms would like to use this as possible leverage in the civil proceedings for any number of legal strategies. The prosecution's brief was scheduled to be due at the end of November, followed by the defense brief at the end of December and then the courts reply in January, 2007.
    WR Grace has lost some leverage in their arguments that they should not be held to the EPA's calculations on Libby mine cleanup with this recent Supreme Court decision essentially affirming the lower court's ruling on WR. Grace having to pay the entire 54.5 million clean up.  EPA costs will continue to rise at the rate it apparently deems appropriate.
    Estimation hearings in the WR. Grace bankruptcy may not be held to as late as June 2007.  These hearings will obtain estimates from sources like plaintiffs' experts, WR Grace's, possibly the banks' and creditors' as to the likely exposure to WR. Grace for all likely claimants.  After the court reviews all the submitted documentation it will then come to a number based on the most likely outcome and it will then have to be determined how much WR. Grace can pay towards that number.
    Although it took almost 6 years for Owens and USG to begin to emerge from their respective bankruptcies this increases the likelihood WR. Grace's emerge may not be far down the road.  The recent federal task forces looking into the class action firms and medical experts on asbestos causation issues may slow it down.  WR Grace is meticulously fighting causation on many questionable claims and the court is giving them wide latitude with expanded questionnaires and discovery.  No one wants to see another after math like in the Babcock proceedings. Meanwhile, the 1.6 billion or so estimated settlement is holding firm at the cost of increasing litigation fees.
    Despite all that is going on with WR Grace its stock continues to climb back to around 13.33 as of October 24, 2006. http://www.grace.com/news/pressreleases/2006/2884.pdf Maybe the announcement of its New BioTechnologies Group and the hope for its growth will help cover the bankruptcy and litigation costs?