MatlinPatterson funds sell shares of Owens Corning

By Lisa Kerner

Charlotte, N.C., April 11 - Owens Corning investors MatlinPatterson Global Opportunities Partners II LP and MatlinPatterson Global Opportunities Partners (Cayman) II LP sold 50,000 shares of the company's common stock at $33.22 per share on Feb. 21.

MatlinPatterson Global Opportunities Partners II LP beneficially owns 8,820,040 shares, or 6.74%, of Owen Corning's outstanding stock, according to a schedule 13D filing with the Securities and Exchange Commission.

MatlinPatterson Global Opportunities Partners (Cayman) II LP beneficially owns 3,157,840 shares, or 2.1%, of the commercial building materials company's outstanding common stock.

MatlinPatterson also said it entered into a collar participation agreement through Bear Stearns International Ltd. under which it takes part in some of Bear Stearns' current obligations.

For MatlinPatterson, the collar includes a short put option which would have obligated one of its limited liability companies to buy 1,661,611 shares of Owens Corning common stock at $25.00 per share from the trust established to receive payments on behalf of asbestos personal injury claimants. That option expired unexercised on April 9.

In addition, the collar includes a long call option providing the LLC with the right to buy 1,661,611 shares of Owens Corning stock until Jan. 8, 2008 at $37.50 per share from the trust.

A similar agreement with another MatlinPatterson limited liability company covers a further 594,905 shares with put and call options having identical terms.

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