Sealed Air Completes Terms of Settlement Agreement Involving Bankruptcy Case of W. R. Grace & Co.
February 04 2014 - 7:30AM
Business Wire
Sealed Air Corporation (NYSE:SEE) today announced it has
completed the material remaining conditions of the previously
disclosed Settlement agreement with the committees appointed to
represent asbestos claimants in the bankruptcy case of W. R. Grace
& Co. This agreement was approved by order of the United States
Bankruptcy Court for the District of Delaware on June 27, 2005.
Pursuant to the terms of the Settlement agreement, Cryovac,
Inc., a wholly owned subsidiary of Sealed Air, fulfilled its
obligation with payments to asbestos claims trusts in the aggregate
amount of $930 million cash and 18 million shares of Sealed Air
common stock.
“This is very positive news for Sealed Air, as the completion of
the settlement has been anticipated for some time and now brings
finality to a matter after more than a decade of preparation. It
resolves asbestos-related claims against Sealed Air associated with
W. R. Grace & Co.,” said Jerome A. Peribere, President &
CEO of Sealed Air. “We will no longer incur interest on the
settlement, which amounted to $48 million in 2013. Additionally, we
anticipate meaningful cash tax benefits over the next several years
that will provide cash that we can use to continue to add value to
our business.”
Business
Sealed Air Corporation creates a world that feels, tastes and
works better. In 2012, the Company generated revenue of
approximately $7.6 billion by helping our customers achieve
their sustainability goals in the face of today’s biggest social
and environmental challenges. Our portfolio of widely
recognized brands, including Cryovac® brand food packaging
solutions, Bubble Wrap® brand cushioning
and Diversey™ cleaning and hygiene
solutions, ensures a safer and less wasteful food supply
chain, protects valuable goods shipped around the world,
and improves health through clean environments. Sealed
Air has approximately 25,000 employees who serve customers in 175
countries. To learn more, visit www.sealedair.com.
Forward-Looking
Statements
This press release contains “forward-looking statements” within
the meaning of the Private Securities Litigation Reform Act of
1995. Forward-looking statements can be identified by such words as
“anticipates,” “believes,” “plan,” “assumes,” “could,” “estimates,”
“expects,” “intends,” “may,” “plans to,” “will” and similar
expressions. These statements reflect our beliefs and expectations
as to future events and trends affecting our business, our
consolidated financial position and our results of operations.
Examples of these forward-looking statements include expectations
regarding our anticipated effective income tax rate, the potential
cash tax benefits associated with the W.R. Grace settlement,
potential volume, revenue and operating growth for future periods,
expectations and assumptions associated with our restructuring
programs, availability and pricing of raw materials, success of our
growth initiatives, economic conditions, and the success of pricing
actions. A variety of factors may cause actual results to differ
materially from these expectations, including general domestic and
international economic and political conditions, changes in our raw
material and energy costs, credit ratings, the success of
restructuring plans, currency translation and devaluation effects,
the competitive environment, the effects of animal and food-related
health issues, environmental matters, and regulatory actions and
legal matters. For more extensive information, see “Risk Factors”
and “Cautionary Notice Regarding Forward-Looking Statements,” which
appear in our most recent Annual Report on Form 10-K, as filed with
the Securities and Exchange Commission, and as revised and updated
by our Quarterly Reports on Form 10-Q and Current Reports on Form
8-K. While we may elect to update these forward-looking statements
at some point in the future, we specifically disclaim any
obligation to do so, whether as a result of new information, future
events, or otherwise.
Sealed Air CorporationInvestors:Lori Chaitman,
201-703-4161orMedia:Ken Aurichio, 201-703-4164
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