Packaging

Sealed Air Update on the W. R. Grace Reorganization Plan

Wednesday 02. February 2011 - Sealed Air Corporation (NYSE:SEE) reported today that the Bankruptcy Court in the W. R. Grace bankruptcy entered its recommended findings and order on January 31, 2011, recommending confirmation of Grace's plan of reorganization.

The bankruptcy process now proceeds to a review period in which the recommended order and findings may be challenged and appealed and during which several conditions must be satisfied before W. R. Grace’s plan of reorganization may become effective.
We will be reviewing the order and findings to ensure that they implement W. R. Grace’s plan of reorganization in a manner fully consistent with the terms of our settlement agreement, dated November 10, 2003.
We stand ready to contribute our payment directly to one or more trusts to be established under Section 524(g) of the Bankruptcy Code once the provisions of the settlement agreement are fully met. Our payment includes cash and 18 million shares of common stock. As of December 31, 2010, the total cash payment would have been approximately $788 million, which reflects the principal settlement amount of $512.5 million and $275.5 million of accrued interest, which accrues at 5.5% per annum and is compounded annually. We intend to fund a substantial portion of the payment using available cash with the remainder from our committed credit facilities. The shares are currently recognized in our diluted weighted average number of shares outstanding for our net earnings per common share calculations. Our payment would resolve all current and future asbestos-related, fraudulent transfer and successor claims against us as a result of the Cryovac transaction with W. R. Grace in 1998.
The order and findings are an encouraging step in the W. R. Grace bankruptcy process. We will continue to review plan details, monitor the bankruptcy process and provide updates as necessary.