Owens Corning obtains court approval of settlement agreement with Blue Ridge

By Jennifer Lanning Drey

Eugene, Ore., Aug. 23 - Owens Corning obtained court approval of an agreement that will allow Blue Ridge Investments LLC to hold a $25 million unsecured claim against Owens Corning, according to a Wednesday filling with the U.S. Bankruptcy Court for the District of Delaware.

Under the settlement, Blue Ridge will be offered the right to subscribe to up to its share of 72.90 million shares of new common stock at $30 per share.

Owens Corning and Blue Ridge entered into an agreement in 1997 in which Blue Ridge purchased 2,000 shares of preferred stock of Faloc, Inc. for $40 million and 14 shares of common stock of Integrex for $100,000, according to a previously filed motion.

Blue Ridge filed a proof of claim against Owens Corning for alleged breach of the put option related to the agreement in 2002.

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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