Owens Corning bondholders granted protection from information request

By Caroline Salls

Pittsburgh, Aug. 23 - Several Owens Corning bondholders obtained protection from the U.S. Bankruptcy Court for the District of Delaware from document and deposition requests from Schultze Asset Management, LLC that the bondholders called a "fishing expedition," according to a Tuesday court filing.

According to the motion, none of the discovery requests pertains to the issues Schultze plans to raise in its plan of reorganization confirmation objection, including absolute priority, impermissible classification, compliance of laws and best interest of creditors.

The bondholders said Schultze is seeking information and depositions from 15 bondholders that are parties to the plan support agreement in connection with plan negotiations and negotiations on the unimpairment motion, settlement term sheet and plan support agreement.

The bondholders said "Schultze's discovery plan should be seen for what it is, an intrusive and unwarranted effort to delve into obviously collateral matters, designed to harass and to divert the parties' and this court's attention from an orderly and timely consideration of the sixth amended plan."

Owens Corning, a Toledo, Ohio, building materials company, filed for bankruptcy on Oct. 5, 2000. Its Chapter 11 case number is 00-3837.

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