U.S. Government Moves to Intervene in W.R. Grace Fraudulent Transfer Proceedings

WILMINGTON, Del. - The U.S. Government has moved to intervene in a fraudulent conveyance action filed against bankrupt asbestos defendant W.R. Grace, claiming it can assist the official claimants' committees in having billions of dollars in illegally transferred assets returned to the bankruptcy estate. In re: W.R. Grace & Co., et al., No. 01-01139, Adv. No. 02-02210, 02-02211 (D.Del., Bankr.).

In a motion filed May 22 in the U.S. Bankruptcy Court for the District of Delaware, the EPA said it wants to intervene in the adversary proceedings so that its interests in the bankruptcy estate are adequately protected.

'The …