Owens Corning gets court approval for claims agreement with Goldman Sachs, OC Funding, WestLB

By Jeff Pines

Washington, June 25 - Owens Corning obtained court approval for an agreement with OC Funding, BV, Goldman Sachs' Special Situations Investing Group, Inc. and WestLB AG.

The deal will give the three creditors and an indenture trustee general unsecured claims of $148.59 million.

Owens Corning created OC Funding for financing purposes. It has a claim of $43.86 million against the company for the $150 million of debentures it sold to raise cash for its parent in 2001. Of the total, $42.4 million in principal is outstanding. It also has scheduled claims against its parent for $72.23 million.

KBC Bank Nederland NV loaned OC Funding $20 million and when OC Funding could not pay it, KBC filed a $20 million claim against Owens Corning. Its claim was ultimately transferred to Goldman's Special Situations Investing Group.

WestLB also loaned OC Funding $10 million, which was guaranteed by Owens Corning. It has a claim of $11.27 million against Owens Corning.

After Owens Corning, a Toledo, Ohio-based building materials company, filed bankruptcy over asbestos claims, it started discussions with Goldman Sachs, which holds more than 50% of the OC debentures.

Under the agreement, Wilmington Trust Co., the indenture trustee for the OC notes, will get a $43.86 million claim, Special Situations Investing Group a $20.39 million claim, WestLB will get a $10.14 million claim and OC Funding will a claim for $50.86 million and another for $23.34 million.

Owens Corning filed for bankruptcy on Oct. 5, 2000. Its Chapter 11 case number is 00-03837.

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