CSFB asks bankruptcy court to await district court ruling on Owens Corning asbestos personal-injury claims

By Jeff Pines

Washington, Aug. 9 - Credit Suisse First Boston asked the U.S. Bankruptcy Court for the District of Delaware Friday not to issue a case management order on Owens Corning's asbestos personal-injury claims until the district court has issued its rulings.

The case management order will determine the procedures for investigating the claims.

At issue is whether there are $16 billion in asbestos personal injury claims against the Toledo, Ohio-based building materials company. CSFB and the other holders of Owens Corning's pre-petition bank debt believe the number is greatly inflated. CSFB said they need more time than Owens Corning wants to give them.

The court directed Owens Corning to work with CSFB and others to develop a mutually agreeable schedule, but Owens Corning "made no effort whatsoever to comply with this directive," CSFB said.

CSFB said it believes that Owens Corning's plan to take depositions 15 days after the requests for discovery are delivered will not give CSFB and the other bank debt holders time to get the needed documents and analyze them.

It also believes Owens Corning's proposed discovery period of 2½ months is not enough time to study the company's claims history.

CSFB wants six months to conduct discovery.

An Aug. 23 hearing is scheduled.

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

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