Owens Corning received approval from the bankruptcy court on 22 March 2004 to pay USD 71.5 million for the 60% interest in Vitro Fibras that currently belongs to joint venture partner Vitro SA de C.V….
Owens Corning received approval from the bankruptcy court on 22 March 2004 to pay USD 71.5 million for the 60% interest in Vitro Fibras that currently belongs to joint venture partner Vitro SA de C.V. U.S. Bankruptcy Judge Judith Fitzgerald approved an order allowing Owens Corning to acquire sole ownership of insulation and reinforcement components maker Vitro Fibras, a joint venture that dates back to 1957. Owens Corning“s advisers put a price of USD 120 million on Vitro Fibras, which has manufacturing operations in Mexico City and three fabrication facilities in Mexicali, Monterrey and San Luis Potosi, Mexico. The basis of the price calculation was 5.8 times Vitro Fibras“ mean annual average level of earnings before interest, taxes, depreciation and amortization over the last four years, Norman Pernick, attorney for the company, said. A Canadian unit of Owens Corning that is not involved in the company“s Chapter 11 case will fund the deal, Pernick said.