W.R. Grace & Co., a Columbia, Md.-based chemical producer, which is considering reorganizing under the Bankruptcy Code is up for renewal of its bank credit line this May but may have to go another route, said Francine Gilbert, director of investor relations. "We are currently negotiating with our bank. There is a renewal risk because of the asbestos litigation. We will look to other alternative sources, such as foreign banks," Gilbert said.
The company has a credit line of $422 million, which expires in 2003 and another credit line of $250 million, which expires in May. Of the $250 million, $150 million has been drawn and put toward litigation expenses, according to Gilbert. She would not say which banks the company uses for its credit line. She said that W.R. Grace is currently reviewing financial advisers to assist the company with restructuring. The company uses its credit facility for the majority of its financing and does not use special financing, such as debt or equity.