Owens Corning bondholders to get 38.5% estimated recovery under new agreement

By Jeff Pines

Washington, June 7 - Owens Corning Corp. said it reached an agreement in principle with its asbestos creditors and official representatives of its bondholders and trade creditors that would give the bondholders, pre-Chapter 11 bank debt holders and senior trade creditors an estimated 38.5% recovery.

Cash, equity and debt will comprise all creditors' recoveries.

Further details were not available at press time.

The company said it now has the support of all of its major creditor groups, except the holders of its pre-Chapter 11 bank debt. Holders of some of the pre-petition bank debt want an examiner appointed to investigate whether an advisor to the former judge overseeing the case used his position to influence the company into changing its reorganization plan favoring one creditor class over another.

Owens Corning, a Toledo, Ohio-based building materials company, filed for bankruptcy on Oct. 5, 2000 to obtain relief from asbestos-related lawsuits. The company's Chapter 11 case number is 00-03837.

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