| USA. Creditor groups reach accord in Owens Corning bankruptcy |
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| Wednesday, 09 June 2004 | |
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Press release: Owens Corning has announced that an agreement in principle has been reached with the company's asbestos creditors and the official representatives of the company's pre-petition bondholders and trade creditors. Through this agreement in principle, Owens Corning has now gained support for its Plan of Reorganization from all of its major creditor groups with the exception of the holders of its pre-petition bank debt, who continue to oppose the Plan. The company's current Plan of Reorganization, which has been supported by the company's asbestos creditors, will be amended to reflect the terms of this agreement. Among other things, the agreement in principle provides that all holders of bonds, bank debt and senior trade debt will receive a recovery equal to 38.5 percent of their claims upon Owens Corning's successful emergence from Chapter 11. The recoveries of all creditors are based on certain agreed and assumed values and will be comprised of cash, debt and equity. However, their actual recovery may ultimately be higher or lower based on the value of the equity to be issued by the company upon emergence from Chapter 11 and other factors. A copy of the term sheet, which reflects the agreement in principle, has been filed with the United States Bankruptcy Court for the District of Delaware. A copy of the Term Sheet is also available on the Company's web site. "Although there continue to be significant challenges in our Chapter 11 case, the negotiation of this agreement was a very important step toward the company's emergence from Chapter 11." said Owens Corning General Counsel Steve Krull. "With this settlement as a foundation, we are anxious to proceed with a confirmation hearing before judges Fitzgerald and Fullam as we work toward emerging from bankruptcy for the benefit of all of our stakeholders." |
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| Last Updated ( Wednesday, 09 June 2004 ) |
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