S&P: Sealed Air unaffected

Standard & Poor's said Wednesday that Sealed Air Corp.'s (BBB/negative/--) ratings and outlook are not immediately affected by news that the federal judge who was overseeing the W.R. Grace bankruptcy case has been removed, in a decision ruled by the 3rd U.S. Circuit Court of Appeals, following a petition filed by certain creditors.

Sealed Air completed and signed a definitive settlement agreement (in November 2003) with the Committee of Asbestos Personal Injury Claimants and the Committee of Asbestos Property Damage Claimants in the W.R. Grace & Co. bankruptcy proceeding.

Under the terms of the settlement agreement, all payments by Sealed Air (including cash and stock) are to be made in full on the effective date of the W. R. Grace plan of reorganization. The settlement and all payments remain contingent upon court approval in the W. R. Grace bankruptcy proceeding, and Sealed Air and its affiliates receiving the full benefit of an injunction under the U.S. Bankruptcy Code.

S&P said that while not expected based on available information, any subsequent indication that the substance of the settlement agreement may be in question would be cause for a review for a potential downgrade.

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