CSFB asks court to force Owens Corning to pay legal fees

New York, April 16 - Credit Suisse First Boston asked the U.S. Bankruptcy Court for the District of Delaware to compel Owens Corning to pay its attorneys fees.

The bank said the company is required to cover these costs under terms of the standstill and waiver agreement ordered by the court on June 19, 2001.

In return for paying the fees, Owens Corning receives the benefit of the banks' not enforcing their rights against the company's subsidiaries, which are not included in the bankruptcy case, including IPM, Inc., CSFB said in a filing Friday with the court.

CSFB said Owens Corning has argued it does not need to pay for asbestos estimation work since there is no conflict with the unsecured creditors committee on this subject.

But the standstill agreement does not include such a limitation, CSFB argued.

Fees have been paid through Nov. 30, 2003 but in February Owens Corning told CSFB it would not pay the costs of challenges to the $16 billion asbestos claims figure, the bank said.

The amount of fees unpaid is $109,504.50, CSFB added.

A hearing is set for May 24.

Owens Corning is a Toledo-based building materials manufacturer. Its Chapter 11 case number is 00-0387.

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