The Wall Street Journal reports that “bank demands for about $100 million in extra interest payments could upset a key deal with asbestos creditors, derailing W.R. Grace & Co.’s bid to exit from Chapter 11 bankruptcy.”

According to the article, a deal reached in April should allow Grace to close the bankruptcy in 2009. However, banks requesting interest at default rates may throw a monkey wrench into the plans.

In papers presented to the court, Grace said they were “poised to proceed with the proposed asbestos settlement and emerge from Chapter 11. The lenders’ most recent demand, however, threatens to derail that process.”

Technically, the banks have deemed Grace’s Chapter 11 proposal “unconfirmable” because they claim it short-changes them by failing to give them the default rate of interest on their loans.

The company has asked presiding judge, Judith Fitzgerald, to quickly decide whether or not the banks are entitled to the extra interest.

“If the banks win a ruling from Judge Fitzgerald that the company owes them interest at the higher rate, a trial that was stopped midway for the settlement will start up once more,” Grace warned.

“That’s because the outcome of the trial will determine whether Grace has enough value to cover its asbestos liabilities and other debts,” the article explains. “If Grace is found to be solvent, banks could be entitled to collect interest at default rates, which are higher than the rate specified in the loan contract.”

An old elementary school that now houses the Cultural Arts Center in Dothan, Alabama has a severe asbestos problem, says Ann Cotton, executive director of the center.

According to an article in the Dothan Eagle, asbestos tiles are constantly coming loose in the cafeteria area, Cotton notes, creating a hazard every time a member of the maintenance staff mops the cafeteria floor. Cotton worries about asbestos exposure, she says, because the cafeteria is a busy area and often hosts special events that involve children.

“It’s in a public place,” Cotton said. “Floor tiles have come up. When I took over the center a year ago, tiles were already up. Pieces are broken.”

Cotton says the Cultural Arts Center took possession of the building in 2002 and is ready to begin its second round of renovations at the school, but they can’t proceed until they address the asbestos problem. She is asking the city to pay $23,000 to have it removed from the sprayed on ceiling, over pipes and conduit, in the ductwork and in the floor tiles and mastic that held the tiles to the concrete slab. In the meantime, activities in the cafeteria area will be severely limited.

“The cafeteria part was an addition made to the building in the early ‘70s. At that time, asbestos was something you used,” she said. “In terms of our use now, it is a high traffic area but we go to that room less often now.”

Cotton said no one is panicked over the asbestos, but everyone wants the space cleared as soon as possible.

“We know asbestos is there and most of our tenants know. We have concerns if it stays. That room is the second largest multi-use space the center has. We use it for arts classes that are large and 50 kids are in there for the art portion of our summer multi-discipline camp. We can’t move forward until that is removed. We thought it would be by September.”

The city, who leases the building to the center, has indicated that they will help with the asbestos abatement.

Approximately 200 middle school students were forced to evacuate the Renaissance Middle School Building in May after officials determined that there were high levels of asbestos-containing materials had been disturbed during construction work. Officials from the New Jersey State Department of Health and Senior Services located asbestos-containing plaster products within the school and deemed that students may have been at risk for inhalation.

Dana Sullivan, Business Administrator for Montclair, NJ schools, assured parents that Renaissance Middle School is now “completely safe” and that the 100-plus air quality tests that have been conducted within the building have indicated that there is no longer a threat of asbestos inhalation. Despite this, Sullivan stated that a dining hall that had previously contained asbestos would no longer be used by students or staff as an additional precaution.

Sullivan’s statements did not satisfy all parents in the Montclair district. In fact, it was parents that first complained about conditions in the Renaissance building after their children divulged that constant construction led to dust and debris on tables, chairs, and other surfaces in Madonna Hall, where the students ate lunch. New Jersey health inspectors were brought in after the initial complaints and confirmed that there were in fact asbestos-containing materials within the school.

Complaints poured in again in mid-May, and health inspectors were again called in to investigate. The school released a letter to parents stating that plaster ceiling tiles may have been “disturbed” during construction. The following day, students were removed from the school and were kept at home for two days while professional cleaning crews were sent in to properly decontaminate the affected areas. School resumed on May 21st, after health agencies deemed Renaissance an asbestos-free building.

Despite the Montclair districts best efforts to promptly remove all asbestos, parents continue to be unhappy in regards to the way the situation was handled by school officials. Several parents claim that, although asbestos was found in March, they were not informed until mid-May. The omission has prompted several parents to write angry letters to school administrators.

New Jersey has several school buildings that are in desperate need of structural repairs, and the potentially dangerous affects of asbestos exposure are expected to become a serious issue. Asbestos exposure has long been linked to the eventual development of mesothelioma, a deadly cancer affecting the pleural lining of the lungs that has no known cure and a survival rate of less than 1%. Mesothelioma can lie dormant in an individual for upwards of fifty years, a fact that promotes fear for the future in Montclair students and their parents.

“Nobody was really watching out for the kids,” said Mary Ann Cucci, PTA president and student parent. “The level of trust is just not there anymore.”

A long-time maintenance man at the Sweetwater Union High School District in the South Bay, San Diego (Calif.) area recently contacted the investigative team at a local news station to tell them he believes students there are still being exposed to asbestos, despite the fact that the district has received thousands of dollars for asbestos abatement.

According to a story recently aired on 10News, George Gerber, a maintenance employee for 17 years, came to the 10News I-Team with boxes of documents. He says he’s repeatedly tried to get the district to listen to his concerns about asbestos exposure, but he’s largely been ignored.

“Almost all of the older schools had some type of asbestos in one form or another,” Gerber points out. “There are areas and rooms that I’ve been reporting for extended period of time that’s almost gone on for 2 years that haven’t been addressed,” he says.

“The I-Team’s asbestos investigation sparked the interest of Frank Parra, who is Vice Mayor for National City,” the story claims. “He’s taking action because three schools in National City - National Middle School, Sweetwater Union High School and Granger Junior High School - are part of the Sweetwater Union High School District.”

Officials say bond money earmarked for asbestos removal in the district has been used for other issues instead. “They got the money and the first thing they did was add on a new wing to the administration building,” says Bernadine Hoff, who served on the San Diego County Grand Jury in 2002-2003. That jury investigated the district’s use of its bond money and the district’s priorities.

Hoff applauds Gerber for taking a stand against the district. “I think he’s a brave man and a good man,” Hoff says.

The district maintains that the asbestos poses no health threat to students and staff, but Gerber has been denied access to the school grounds unless he’s accompanied by another school employee.

Residents on Chestnut Street in the city of Hartford discovered over a dozen garbage bags filled with asbestos-laden insulation this week. Connecticut Department of Environmental Protection officials believe that someone dumped the asbestos illegally in an attempt to save money.

“They were open to the public where anybody could have walked over the bags,” stated Brian Emanuelson, a DEP official. The eighteen garbage bags were carelessly tossed into a pile in a small field on the side of the street and were discovered by residents who lived nearby. DEP officials removed the bags and safely transported them to a landfill.

Chestnut Street resident Nancy Walker claims that this is not the first time that garbage has been carelessly left on the side of the street. Other residents told the DEP that various items, such as old mattresses, couches, and even deceased animal carcasses, have been found in the same area before – an area where neighborhood children often play.

“We have a lot of children here growing up,” stated Walker. “…if they were exposed to asbestos, we don’t know what the long-term effects could possibly be.”

The potential long-term effects associated with exposure to asbestos include the development of mesothelioma, a deadly cancer that attacks the lining of the lungs. Mesothelioma has a survival rate of less than 1% and has no known cure. Asbestos fibers can be inhaled and will settle into the lungs, where they can remain for up to fifty years before an individual will begin to experience symptoms associated with mesothelioma.

The DEP has no suspects, but urges residents in the neighborhood to be on the lookout for suspicious dumping. “My daughters plays outside,” said Hartford resident Denell Hicks. “I just think it’s disgusting that people think this is a city dump.”

This afternoon, Minnesota health officials and politicians will meet together to receive an update on the research that’s delving into the cause of lung disease among iron ore miners in that state.

According to a Minnesota Public Radio story, the two groups will come together to hear more about the progress of the $5 million study that will examine “various aspects of the complicated question of why men in northeastern Minnesota are getting mesothelioma, a rare cancer caused by asbestos, at twice the expected rate.”

The study is being conducted by the University of Minnesota - School of Public Health. It was approved in April and research began immediately. Study results will be garnered from assessments of the health of active and retired miners, the review of death certificates, and investigations into the 58 miner deaths caused by mesothelioma.

In addition, the Natural Resources Research Institute is analyzing iron ore samples and dust in the air in Iron Range communities, to see how closely they match asbestos dust, the article explains.

A worker removing old tiles and clearing the former Universal Hotel Liquidators site in New Haven, Conn. reported the building’s owner to the Occupational Safety and Health Administration (OSHA) this week after becoming suspicious about the presence of asbestos inside the building.

According to an article in the New Haven Register, Ernie Jones says he left the work site each day with a “hard cough” and had a feeling that something just wasn’t right. After reporting his concerns to OSHA, federal, state, and city workers showed up at the site on Wednesday, probing allegations that asbestos had been removed without masks or ventilation being used; that piles of asbestos-coated debris had been left unsecured outside; and illegal immigrants were sleeping on cots inside the building.

On Wednesday, City Building Official Andrew Rizzo issued two cease-and desist notifications to Brooklyn, N.Y.-based property owner State Assets LLC, the owners of the building, stopping any further work at the property and halting use of the second floor as an illegal boarding house.

Rizzo said he asked workers about the possibility that asbestos tiles were removed from the site before the inspections so as to avoid prosecution. Regardless of whether or not that occurred, city Director of Environmental Health Paul Kowalski said asbestos was indeed found at the site.

Project manager Aryk Benmaim said the site was previously tested for asbestos by a private company and the results came back negative. After worker complaints, the city retested and got positive results.

“It was zero. (The city) insists on taking samples, and it came out positive. I don’t know how it could be,” Ben-maim said.

Anonymous workers told OSHA representatives that illegal workers are brought in each day from New York. They bag the asbestos every night, readying it for removal. During the day, Jones and his fellow workers tear up the tiles using an ice chisel.

“I’ve built half of downtown,” Jones said. “I always had masks. This is the only building I’ve had where the boss gave me no masks and no protection.”

OSHA continues to investigate the situation.

The state of Virginia is conducting an investigation to determine whether a contractor or sub-contractor for the new $14 million U.S. Navy housing project in Newport News illegally dumped asbestos debris at a landfill in Suffolk that was not licensed to accept toxic friable asbestos.

According to an article in The Daily Press, John Holland, owner of John C. Holland Enterprises Inc., a landfill off Nansemond Parkway in Suffolk, told reporters that debris from the Navy site at 31st Street and Washington Avenue is being tested for asbestos and has been quarantined. The state allows the landfill to accept non-friable asbestos-contaminated material, which is asbestos that remains undisturbed and has not broken down, explains Holland.

Holland explained that he continues to feel unsure about the state of the asbestos at his landfill and whether or not the debris might release toxic fibers. “There is a possibility. It’s quarantined. For right now it’s not going anywhere,” he said.

Officials from the Virginia Beach office of the state Department of Environmental Quality were telephoned by Holland last week when he became suspicious about the debris from the U.S. Navy project.

A sample taken on March 6 from a stockpile of siding material left at the construction site was tested by a certified environmental laboratory in Chesapeake. On March 11, the laboratory confirmed that the sample contained 15 percent asbestos.

An article in the San Jose Mercury News points out the fact that home inspectors hired to review homes for new buyers rarely pay attention to the presence of asbestos.

“Asbestos is generally regarded as “outside the scope” of a home inspection and is typically not mentioned by most home inspectors,” says columnist Barry Stone.

“For home inspectors, the issue is one of legal liability. If any material is disclosed as a potential source of asbestos, the inspector may be held liable for other possible asbestos materials that were not mentioned in the inspection report,” he adds. “For this reason, the home inspection industry has excluded asbestos as a consideration during home inspections.”

Many common building materials, he points out, may contain asbestos, especially in older homes. These include sheet vinyl flooring, asphalt and vinyl floor tiles, adhesive mastics, acoustic ceiling texture, heat duct insulation, asphalt composition roofing materials, plaster, stucco, drywall, joint compound and more.

Stone points out that most of these materials present no health hazard unless they are worn or damaged. However, some argue that inspectors should simply “point out” these potential hazards so that the homeowner can keep an eye on the hazardous material and catch any problems if they arise.

In addition, notification of where asbestos may be present could stop do-it-yourselfers from tearing out floors, ceilings, or walls where asbestos might be present. Instead, they would understand that it is necessary to hire abatement professionals to remove and dispose of the material.

In Australia this week, a new research group dedicated to addressing the needs of mesothelioma sufferers was launched by Karen Banton, widow of long-time asbestos campaigner, Bernie Banton.

According to a press release from Research Australia, “the Asbestos Research Group will facilitate research and raise awareness of asbestosis and asbestos-related diseases both to the medical fraternity and the general community, with the aims of improving treatment and enhancing the quality of life of those affected.”

The Group, headed by Brisbane-based doctors Roger Allen and Maurice Heiner, “will analyze the progression of the disease over time as the basis for further research into reduced lung function then study asbestos-pleural pain. It will also analyze the physical, emotional and financial effects of the disease on patients.”

Dr. Allen has treated mesothelioma patients for the past 20 years and has viewed first-hand the terrible effects of the disease.

“I continue to see middle-aged adults dying from mesothelioma or asbestosis, the victims of decades of appalling indifference around the world to the known dangers of asbestos, and the ravages of asbestos will continue for decades to come,” Dr Allen said. “One of our Group’s highest priorities will be to highlight these tragic effects in a world where the mining and export of asbestos continues in many countries.”

Dr Allen also says a “second peak” of asbestos-related cancers and asbestosis will hit Australia in the next 20 years and said that it had been forecast that between 2000 and 2050 an estimated 27,000 deaths from mesothelioma would occur in that country.

“However, the number of mesothelioma patients was just the tip of the iceberg”, he said. “The vast majority of patients with asbestos diseases suffer from benign asbestos pleural disease and asbestosis. The pain they endure was the subject of the first research project of the newly established Asbestos Research Group, the results of which I hope will be published and lead to greater recognition of benign asbestos pleural pain.”