Owens Corning files amended reorganization plan, bondholders see 15.1% to 45.4% recovery

By Carlise Newman

Chicago, May 27 - Owens Corning Inc. filed a second amended plan of reorganization Friday in which recovery for creditors is dependent on whether bank debt holders approve the plan.

Recovery levels also depend on the level of asbestos claims. Owens Corning outlined various scenarios with asbestos claims ranging from its current reserve level of $5.8 billion up to $24 billion.

Under the new plan, bank debt holders, with $1.5 billion in claims, will receive a recovery ranging between 60.2%, with $5.8 billion of asbestos claims, and 38%, if there are $24 billion of asbestos claims. Recovery will be in cash, new notes and stock.

Bondholders, with $1.3 billion in claims, and unsecured claims holders, with $375 million in claims, will receive a recovery ranging between 45.4% and 15.1%. Recovery will be in cash, new notes and stock.

Owens Corning asbestos personal injury class A claims holders were estimated to have claims from $3.56 billion to $16 billion with recovery from 47.9% to 15.9% respectively.

Fiberboard Corp. asbestos personal injury claimants were estimated to have claims between $2.3 billion and $7.9 billion, with recovery from 66.3% to 19.3% respectively.

Equity holders will receive nothing.

If bank debt holders do not accept the plan, the estimated recovery for bank debt holders, bondholders, and unsecured claims holders ranges between 48.7% and 16.8%.

Under that scenario, Owens Corning asbestos personal injury claimants will receive between 51.1% to 17.7% recovery. Fiberboard Corp. asbestos personal injury claimants will receive between 66.3% and 19.3% recovery. Fiberboard asbestos property damage claimants will be paid in full regardless of scenario.

Toledo-based Owens Corning manufactures building materials systems and composite systems.

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