A bankruptcy judge signed off yesterday on a deal to permit J.P. Morgan Securities Inc. to underwrite a $2.2 billion stock rights offering that Owens Corning will make to bond-holders and certain other creditors.
Judge Judith Fitzgerald, of Wilmington, Del., approved the deal after a brief teleconference, said Jason Saragian, an OC spokesman. Under the deal, J.P. Morgan will buy any unsold stock at $30 a share in the 79.2 million-share offering that is expected to take place this year when the firm plans to emerge from Chapter 11 bankruptcy.
The offering will be made to a limited group of creditors and is expected to precede public trading in OC shares. Approval of the agreement was delayed when opposition surfaced to a $100 million fee J.P. Morgan will receive for its role. The objection was withdrawn.