Owens Corning bondholders, trade creditors yank support for trustee, still support examiner

By Jeff Pines

Washington, June 21 - Owens Corning Corp.'s bondholders and trade creditors have a have withdrawn their support for a motion to appoint a Chapter 11 trustee for the company now that they have a sweet enough deal with the company for its debt restructuring.

The bondholders and trade creditors filed their motion with the U.S. Bankruptcy Court for the District of Delaware Friday.

But given recent developments in the case, they are still supporting the appointment of an examiner to investigate whether asbestos plaintiffs' attorneys had undue influence over the company in developing its reorganization plan.

The primary mover behind this effort are the holders of the company's bank debt, including Credit Suisse First Boston, the agent for the pre-petition bank lenders, Springfield Associates, LLC and Angelo Gordon.

Owens Corning is a Toledo, Ohio-based buildings materials company. It filed for bankruptcy on to deal with growing asbestos-related litigation on Oct. 5, 2000.

The hearing for appointing the examiner was scheduled for Monday. A hearing on the trustee motion is scheduled for July 19.

Owens Corning's Chapter 11 case number is 00-3837.

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