20 January 2003
20 January 2003
Owens Corning has filed a Joint Plan of Reorganization in the United States Bankruptcy Court for the District of Delaware.
The company and 17 of its United States subsidiaries, together with the Official Committee of Asbestos Claimants, and the Legal Representative for future asbestos personal injury claimants, filed the Plan. Owens Corning filed for protection under Chapter 11 of the U.S. Bankruptcy Code on October 5, 2000. The filing was necessitated by the growing demands on the company's cash flow resulting from the substantial costs of asbestos personal injury litigation.
""The filing of this Plan is an important milestone for Owens Corning. I am proud that we are taking these steps to resolve our asbestos liability once and for all,"" said David T. Brown, chief executive officer. ""This Plan advances our objective of emerging from Chapter 11 as quickly as possible as a strong and competitive company well positioned to serve our customers.""
The Plan provides for partial payment of all creditors' claims, in the form of distributions of new common stock and notes of the reorganized company, and cash. Additional distributions from potential insurance and other third-party claims may also be paid to creditors, but it is expected that all classes of unsecured creditors will be impaired. Therefore, the Plan also provides that the existing common stock of Owens Corning will be cancelled, and that current shareholders will receive no distribution or other consideration in exchange for their shares.