Owens Corning files plan; bondholders, unsecured creditors, asbestos claimants to share stock, cash

By Caroline Salls

Pittsburgh, Jan. 3 - Owens Corning filed its fifth amended plan of reorganization and disclosure statement Saturday with the U.S. Bankruptcy Court for the District of Delaware that gives cash and new common stock to bondholders, unsecured creditors and asbestos claimants.

Under the plan, bondholders, general unsecured creditors and asbestos personal injury claimants will recover a varying percentage of their share of 16.2% of cash to be distributed and 83.8% of the new common stock, depending on whether bondholders and general unsecured/senior debt creditors vote to accept or reject the plan.

Bank debt creditors will receive 150.3% recovery in cash if they vote to accept the plan.

Treatment of creditors under the plan will include:

• Holders of $1.467 billion of bank debt claims will recover either 150.3% in cash, including interest if they vote to accept the plan or, if they vote to reject the plan, an amount to be determined by the court in cash and cash-pay senior notes.

• $1.389 billion of bondholders and $207.1 million to $213.6 million of general unsecured/senior debt claimants will recover 48.4%, made up of their share of 16.2% of the cash and 83.8% of the new Owens Corning common stock to be issued under the plan if they vote to accept it or 38.9% recovery in cash and new common stock if they vote to reject it.

• Holders of $76.8 million to $100.4 million in general unsecured claims will recover 41.3%, made up of their share of 16.2% of the cash and 83.8% of the new Owens Corning common stock if bondholders and general unsecured/senior debt claimholders vote to accept the plan or 35.7% recovery in cash and new common stock if they vote to reject it.

• Owens Corning asbestos personal injury claimants will recover 45.1%, made up their share of 16.2% of the cash and 83.8% of the new Owens Corning common stock to be issued if bondholders and general unsecured/senior debt claimholders vote to accept the plan or 42.8% recovery in cash and new common stock if they vote to reject it.

• Holders of Fiberboard Corp., Exterior Systems Inc., Vytec Corp., Soltech, Inc., Owens-Corning Fiberglas Technology Inc., Owens-Corning Fiberglas Sweden Inc., IPM Inc., Integrex, CDC Corp., Owens Corning HT Inc., Owens Corning Remodeling Systems LLC, Engineered Yarns America Inc., Falcon Foam Corp., HOMExperts LLC, Integrex Professional Services LLC, Integrex Testing Systems LLC, Integrex Supply Chain Solutions LLC, Integrex Ventures LLC, Jefferson Holdings Inc. and Owens-Corning Overseas Holdings Inc.'s asbestos and general unsecured claims will recover 100% in their share of 16.2% of cash and 83.8% of new common stock in the reorganized company to be issued under the plan, regardless of acceptance or rejection of the plan.

All asbestos personal injury claims will be channeled to an asbestos personal injury trust or a Fiberboard Insurance personal injury trust.

The asbestos personal injury trust will be funded with cash, new common stock in the reorganized company, the Owens Corning insurance escrow, the Owens Corning asbestos personal injury liability insurance assets, some payments due under an AIG Insurance settlement agreement and the distributable proceeds of $1 million in litigation trust assets.

The Fibreboard trust will be funded with the existing Fibreboard Insurance settlement trust assets, Fibreboard reversions, a committee claims account and a Fibreboard sub-account settlement payment.

Exclusivity extension request

The company also requested an extension to its exclusive periods to file a plan of reorganization and solicit votes on the plan, according to a Saturday filing with the U.S. Bankruptcy Court for the District of Delaware.

The company wants to extend its exclusive plan filing and solicitation periods to July 31, 2006 from Jan. 31.

According to the motion, the extension is necessary to allow the company time to continue to attempt to reach agreement on a consensual plan with the one remaining major creditor constituency, the bondholders and to complete the necessary procedures to gain approval of the disclosure statement and solicit acceptances of the plan.

A hearing on the exclusivity extension is scheduled for Jan. 30.

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

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