Credit Suisse First Boston objects to Owens Corning extension to Dec. 31

By Jeff Pines

Washington, July 6 - Credit Suisse First Boston objected to Owens Corning Corp.'s request to extend its exclusive right to solicit votes for a reorganization plan until Dec. 31.

CSFB, the agent for the pre-petition lenders, recommended Oct. 31 as an alternative for the Toledo, Ohio-based building materials company.

CSFB said it expects the issue of substantive consolidation to be resolved sometime in mid- to late-October. Substantive consolidation concerns whether Owens Corning's subsidiaries are just part of a bigger business or independent subsidiaries. The pre-petition bankers have their loans secured by the subsidiaries. Owens Corning's position is that they are just part of the bigger business. If the subsidiaries are not part of a bigger unified operation, then the pre-petition bankers would get a bigger recovery.

If there is no decision on substantive consolidation before the end of October, Owens Corning can apply for another extension, CSFB said.

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

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