Owens Corning asbestos liability stays at $7 billion

By Caroline Salls

Pittsburgh, April 14 - Owens Corning's liability for asbestos claims was upheld at $7 billion, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Delaware.

Judge John Fullam rejected a request from Credit Suisse First Boston, the agent for Owens Corning's pre-bankruptcy bank lenders, that the figure be cut to an estimate of $4.8 billion because it included estimates for punitive damages.

In Wednesday's filing, the judge said he considered more than the doctors' testimony on the matter and that he "attempted to arrive at an estimate which appropriately reflected the differences between what has already occurred and what is likely to happen in the future."

Included in the total is pending claims, future claims and contract claims.

Fullam originally set the figure in a March 31 order but CSFB then asked for a reconsideration.

CSFB said that, although the judge ruled that punitive damages should not be included in the estimate, he relied upon estimates from doctors that included punitive damages and he "did not make any adjustments to account for alleged overpayments to unimpaired clients."

The Toledo, Ohio-based building materials company had previously estimated its asbestos claims to be $16 billion.

But CSFB and other holders of the loans had said the value of claims is "significantly lower."

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

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