Owens Corning unsecured creditors file supplementary motion for trustee

By Jeff Pines

Washington, June 1 - Owens Corning Corp. needs a trustee and the Official Committee of Unsecured Creditors, which requested one at a May 18 hearing, wants to reinforce that point.

The committee filed a supplementary motion with the U.S. Bankruptcy Court for the District of Delaware Friday.

Its position is that the plan of reorganization favors the asbestos claimants. It called the estimated $16 billion in asbestos claims "wildly inflated."

When the committee tried to get information on how the Toledo, Ohio-based fiberglass and composite materials company developed the estimated asbestos claims, it said the company refused.

The committee believes the company has taken the side of the asbestos claimants over that of the commercial creditors and that Owens Corning is no longer a neutral party.

It also is aware of a motion to appoint an examiner to investigate whether the tort law firms had undue influence over the plan process. If the motion for the examiner is approved, the committee said it will back off on its request until the examiner completes his or her investigation.

A July 19 hearing is planned.

Owens Corning's Chapter 11 case number is 00-03837.

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