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.
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