SADDLE BROOK, N.J., April 2, 2001 (PRIMEZONE) -- Sealed Air Corporation (NYSE:SEE) responded today to the filing by W. R. Grace & Co. and certain of its subsidiaries (collectively "Grace") for reorganization under Chapter 11 of the U.S. Bankruptcy Code and the potential effect on Sealed Air in light of Grace's asbestos liabilities, the 1998 corporate transaction involving Sealed Air and Grace, and the fact that Sealed Air has been named as a defendant in a number of asbestos-related lawsuits against Grace.
Grace's filing for bankruptcy does not change Sealed Air's views regarding asbestos claims made against Sealed Air. When Sealed Air purchased Grace's Cryovac business in 1998, Grace and its subsidiaries retained all Grace liabilities whether accruing or occurring before or after the transaction, other than liabilities arising from or relating to Cryovac's operations. Neither Sealed Air nor Cryovac has ever produced or sold asbestos-related products. The Company believes that close examination of the details of the transaction and of the applicable legal principles demonstrates that Sealed Air has strong defenses against claims alleged by asbestos plaintiffs. While it is not possible to predict the outcome of any litigation, based on the facts known to the Company, Sealed Air does not believe that an adverse outcome is probable.
Sealed Air believes that Grace's filing for reorganization potentially may benefit Sealed Air by providing a single forum in which all litigation related to Grace's asbestos liabilities might be resolved. Sealed Air has been advised that Grace filed an application with the Bankruptcy Court seeking to stay all actions related to Grace's asbestos liabilities in which Sealed Air has been or might be named. The effect of the stay would be to freeze all such lawsuits. However, Grace's bankruptcy could cause the Company to incur additional costs that could become material to the Company's results of operations.
Sealed Air remains focused on managing its operations and serving its customers. The Company has satisfactory credit and cash flow and continues to implement its business strategy and growth initiatives.
Sealed Air is engaged primarily in the manufacture and sale of a complementary line of food, protective and specialty packaging materials and systems. To view the Company's latest financial news online via the World Wide Web, visit http://www.cfonews.com/see.
Certain statements made by the Company in this press release are forward-looking statements. These statements include comments as to the Company's beliefs and expectations as to future events and trends affecting the Company's business. These forward-looking statements are based upon management's current expectations concerning future events and trends and are necessarily subject to uncertainties, many of which are outside the control of the Company. The factors stated under the heading "Forward-Looking Statements" in Management's Discussion and Analysis of Results of Operations and Financial Condition, which appears in the Company's Annual Report on Form 10-K for the year ended December 31, 2000, could cause actual results to differ materially from such statements.