COLUMBIA, Md. (AP) -- In a story Jan. 24 about W.R. Grace taking a $365 million charge, The Associated Press reported erroneously the reason for the charge. The $365 million is an adjustment to asbestos-related liabilities on the company's balance sheet. It reflects the increase in value of stock warrants and deferred payments obligations that W.R. Grace placed into a trust that was established to pay asbestos liability claims. It does not reflect an increase in the estimated costs of settling the claims.
A corrected version of the story is below:
W.R. Grace raises asbestos liability to over $2B
W.R. Grace raises liability for asbestos claims to more than $2 billion
COLUMBIA, Md. (AP) -- Chemical and building material manufacturer W.R. Grace & Co. said Thursday that it will raise its recorded liability for asbestos claims to $2.07 billion.
Previously the amount had been $1.7 billion.
The company said it will report a $365 million charge for the fourth quarter.
Grace had to increase the amount of asbestos-related liabilities on its balance sheet because of an increase in value of stock warrants and deferred payments obligations that the company placed into a trust that was established to pay asbestos liability claims.
The company originally filed for bankruptcy protection in April 2001 so it could resolve its asbestos-related liabilities. A bankruptcy court reaffirmed its reorganization plan in June, but several parties filed to appeal.
Shares of the Columbia, Md., company fell 41 cents, or 0.6 percent, to $71.50 in after-hours trading Thursday.