N.Y. court denies O-I's request to bar lawsuit

1/15/2002

NEW YORK - The New York State Supreme Court yesterday denied a request from Owens-Illinois, Inc., and Deutsche Bank AG to dismiss a bondholder lawsuit over a $4.5 billion loan the German bank arranged for the Toledo glass and plastic container maker last year that granted lenders collateral as security.

In a nine-page ruling, Judge Richard B. Lowe said the court refused to bar the contentions of Murray Capital, a privately held investment firm, that O-I and Deutsche Bank should have given bondholders as much security as lenders received when the bank arranged the financing to help pay asbestos claims.

The Toledo company sought to have the suit dismissed because, among other things, provisions in the bonds prevented an individual bondholder from bringing such a claim. The judge said that to bar Murray Capital "from any redress would be manifestly unjust."