Owens Corning, Toledo s third largest company best known for its roofing shingles and building insulation, said today it has reached a deal with its creditors on a plan to emerge from Chapter 11 bankruptcy this year.
The company plans to create a trust fund to pay people claiming to have been harmed from asbestos included in a product the firm made decades ago. It also would provide some money to partially pay back its lenders and bond-holders.
The deal still requires a formal plan by the creditors and approval of the U.S. Bankruptcy Court in Wilmington, Del., where OC filed for Chapter 11 protection on Oct. 5, 2000 because of mounting asbestos-liability claims.
The company, which has continued operations and had a strong financial year in 2005, would emerge with new stock, most of which would be owned by its creditors.
Read more in later editions of The Blade and toledoblade.com.
Guidelines: Please keep your comments smart and civil. Don't attack other readers personally, and keep your language decent. Comments that violate these standards, or our privacy statement or visitor's agreement, are subject to being removed and commenters are subject to being banned. To post comments, you must be a registered user on toledoblade.com. To find out more, please visit the FAQ.