I have a feeling that once they come out of chapt.11 the losses they report will move the stock down. I wrote coverd calls. I don't know what to think . Even if they make $4.85 a share they have to use the charges of payments to victims and I can't see much in profits but might make them an attractive take over.
If you go to the SEC website and search under GRA filings, you will find that as of 2008, the 10-K filing shows that GRA has set aside $1.7 billion for the Asbestos claims.
The other reason that they may not be out of Chapter 11, is part of the original agreement. Under the proposed settlement, the Personal Injury (PI) would have the right to buy 10 million shares of GRA up to one year after the settlement for $17/share. GRA probably never thought the stock would be almost $70/share when the agreement was proposed. The 10 million shares would dilute the stock by about 13% and reduce the EPS by about the same.