Owens Corning objects to paying fees for bankers' lawyers

By Jeff Pines

Washington, May 10 - Owens Corning objected to paying the fees of a law firm retained by Credit Suisse First Boston, the agent for its pre-petition bankers under a standstill and waiver agreement. The company filed its objection with the U.S. Bankruptcy Court for the District of Delaware on Monday.

Credit Suisse First Boston wants Owens Corning to pay the fees of Kramer, Levin, Naftalis & Frankel LLP, which it retained to estimate the company's present and future asbestos tort liability claims. Credit Suisse First Boston filed a motion in April to compel the Toledo-based building materials manufacturer to pay the law firm $109,504.50.

Credit Suisse First Boston is a member of the official committee of unsecured creditors and the judge ruled that in cases where the banks' interests diverged from those of other unsecured creditors they could retain another law firm, Owens Corning said.

But the company said since there was no conflict with the official committee of unsecured creditors because all the unsecured creditors have an interest in knowing what the company can expect to face in claims. The committee's attorneys, Davis Polk & Wardwell, were already doing the work, it said. In Owens Corning's view, the bankers are asking it to pay twice for the same work.

Even though Credit Suisse First Boston said the two firms and another Anderson Kill & Olick, PC agreed to divide up the work, the company said time records show three firms working on the same matters and issues.

A May 18 hearing is scheduled.

The company's case number is 00-03837.

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