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Published on 2/2/2004 in the Prospect News Distressed Debt Daily.

Judge in W.R. Grace, Owens Corning and USG cases rejects recusal motion

By Jeff Pines

Washington, Feb. 2 - Judge Alfred Wolin rejected motions that he recuse himself from the Chapter 11 cases of W.R. Grace & Co., Owens Corning and USG Corp., according to a Feb. 2 court filing. Wolin is a judge with the U.S. Bankruptcy Court for the District of Delaware.

The three building products companies filed for Chapter 11 over asbestos claims.

Two creditors, Kensington International Ltd. and Springfield Associates, LLC, along with USG itself argued they would not get a fair hearing because the judge and his advisors held discussions outside the courtroom with people who were and were not involved in the case. All three filed motions asking him to turn the case over to another judge.

The U.S. Court of Appeals for the Third Circuit left the recusal decision with Wolin, who chose not to recuse himself.

USG said it plans to seek review of the decision in the Third Circuit Court of Appeals. W.R. Grace said it had no comment. Prospect News was unable to reach anyone for comment at Owens Corning before press time.

The Chapter 11 case numbers for Owens Corning, W.R. Grace & Co. and USG respectively are 00-3837, 01-1139 and 01-2094.


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