Owens Corning bondholders will vote against plan to be proposed

By Jeff Pines

Washington, Dec. 3 - A group of Owens Corning bondholders said it plans to reject the company's soon-to-be proposed fifth amended reorganization plan.

King Street Capital Management LLC, D.E. Shaw Laminar Portfolios LLC, Harbert Management Corp., Canyon Partners Inc., and Lehman Brothers Inc. detailed their plans in a single filing with the U.S. Bankruptcy Court for the District of Delaware Friday. Together they said they control more than a third of Owens Corning's outstanding bonds.

The bondholder agreement the company refers to was made with two bondholding members of the unsecured creditors committee, and one of the bondholders has since sold its bonds and resigned from the committee, the group said.

The remaining bondholder on the committee holds a "minuscule amount of bonds," it said.

"The true voice of the bondholder class is that represented by the bondholders here. The pertinent fact is that the forthcoming fifth amended plan of reorganization will be opposed and voted against by the bondholders," the group said.

The group does not object to the extension of the company's exclusive right to solicit votes for its reorganization to June 30, 2005.

Owens Corning, a Toledo, Ohio-based building materials manufacturer, filed for bankruptcy on Oct. 5, 2000. Its Chapter 11 case number is 00-03837.

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