Owens Corning seeking restriction on transfer of equity securities

By Ellen Chang

Houston, Feb. 23 - Owens Corning asked for restrictions on transfers of its equity securities so that it would not lose tax advantages.

The company filed a motion Wednesday seeking interim and final orders with the U.S. Bankruptcy Court for the District of Delaware.

Owens said two entities have already purchased significant equity positions in the company.

Harbert Distressed Investment Master Fund Ltd. purchased 5.5 million shares of common stock - about 10% of the shares outstanding - and Lehman Brothers Holdings Inc. acquired 3.9 million shares of common stock - 7% of the shares outstanding. The combination of the 17% interest is treated as an ownership change of Owens.

Owens said the company could lose "significant potential tax savings" if an "ownership change" occurs and would impact a "successful restructuring."

The proposed emergency hearing date is Feb. 28.

Owens Corning, a Toledo, Ohio, building materials company, filed for bankruptcy on Oct. 5, 2000. Its Chapter 11 case number is 00-3837.

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