Charleston seeks to seize land tied up in bankruptcy court
By The Associated Press Saturday, December 29, 2007CHARLESTON, S.C. - Charleston’s request for 16.5 acres tied up in bankruptcy court would benefit both coastal residents and the creditors of W.R. Grace & Co., a city attorney said Thursday.
The city filed papers in U.S. Bankruptcy Court last week attempting to acquire the property from Grace, where a shuttered fertilizer and pesticide plant operated for decades. The once-contaminated facility has since been cleaned.
The city has long planned to build new public works, maintenance and fire-training facilities on the site to replace outdated facilities nearby. That land would become part of a planned retail and residential development meant to revitalize the upper peninsula, said attorney Charlton deSaussure.
The Maryland-based Grace & Co. filed for Chapter 11 protection in 2001, following asbestos-related lawsuits. Because the land is tied up in bankruptcy court, Grace can’t sell it on its own, deSaussure said.
A court hearing on the request is set for next month. Approval would benefit creditors by converting unused property to cash, deSaussure said.
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