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IN RE W.R. GRACE & CO.

Civil Action No. 08-863. Bankruptcy Case No. 01-1139.

418 B.R. 511 (2009)

In re W.R. GRACE & CO., et al. State of California Department of General Services, Appellant, v. W.R. Grace & Co., et al., Appellees.

United States District Court, D. Delaware.

September 29, 2009.

Attorney(s) appearing for the Case

Steven J. Mandelsberg, John P. McCahey, Christina J. Kang, Hahn & Hesson LLP, New York, NY, Leslie Carol Heilman, Ballard, Spahr, Andrews & Ingersoll, LLP, Wilmington, DE, for State of California, Department of General Services, Appellant.

James E. O'Neill, III, Kathleen P. Makowski, Timothy P. Cairns, Pachulski, Stang, Ziehl & Jones, LLP, Wilmington, DE, for Appellees.

MEMORANDUM

BUCKWALTER, Senior District Judge.

Currently pending before the Court is the appeal of the State of California, Department of General Services (the "State" or "California") from the October 10, 2008 Order of the United States Bankruptcy Court for the District of Delaware. For the following reasons, the Order of the Bankruptcy Court is reversed.

I. BACKGROUND AND PROCEDURAL HISTORY

The Debtors, W.R. Grace ("Grace") and...

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