Building materials maker Owens Corning emerged from bankruptcy protection on 31 October 2006, just over six years after it filed for Chapter 11 because of rising costs from asbestos lawsuits.
The com…
Building materials maker Owens Corning emerged from bankruptcy protection on 31 October 2006, just over six years after it filed for Chapter 11 because of rising costs from asbestos lawsuits. The company now has a plan to settle asbestos-related lawsuits and resolve future asbestos liabilities. “We are emerging from Chapter 11 in a strong operational and financial position”, said Dave Brown, president and chief executive. “During the past six years, we have continued to grow our businesses around the world and have strengthened our financial performance”. The Toledo, Ohio-based company, with a global workforce of 20,000 employees, had sales of USD 6.3 billion (EUR 4.96 billion) in 2005. Its new stock began trading 1 November 2006 on the New York Stock Exchange. Creditors will hold most of the shares. A federal bankruptcy judge approved Owens Corning“s plan for emerging from bankruptcy in September 2006. The plan transfers the company“s USD 7 billion (EUR 5.51 billion) in asbestos liabilities from company books into a trust that will be established for the plaintiffs. As part of the plan, Owens Corning will pay more than USD 5 billion (EUR 3.94 billion) to asbestos claimants and as much as USD 2.27 billion (EUR 1.79 billion) to holders of bank debt.