MatlinPatterson sells off shares of Owens Corning for 0% stake in the company

By Lisa Kerner

Charlotte, N.C., May 22 - Owens Corning investors led by MatlinPatterson Global Opportunities Partners II LP and MatlinPatterson Global Opportunities Partners (Cayman) II LP sold 9,721,364 shares of common stock in a block trade on May 17.

The investors no longer own any interest in the commercial building materials company, according to a schedule 13D filing with the Securities and Exchange Commission.

On April 11, MatlinPatterson 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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