Owens Corning files motion to restructure bond payments on headquarters facility

By Carlise Newman

Chicago, April 10 - Owens Corning requested approval of an agreement in principle in court Wednesday that would allow the company to stay within its world headquarters by restructuring lease payments to the landlord of the building.

The company reached agreements with the Toledo-Lucas County Port Authority, its landlord and issuer of the bonds used to finance the construction of the building; and the city of Toledo and First Energy Properties Inc., owners of the building site. Subject to bankruptcy court approval of the transaction, and 100 % participation of the revenue bondholders, the agreement will enable the company to remain in its present location.

Owens Corning's lease payments are used to make payments due on the bonds, as well as to pay certain other funding obligations.

The company previously said it was prepared to move this year to an alternative location if it unable to restructure lease obligations to be more consistent with market realities.

Owens Corning filed for Chapter 11 protection in 2000 due to mounting asbestos liability.

"The agreement in principle is significant because it gets us to a lease structure that is in line with market rates," said Jim Eckert, Owens Corning's director of real estate and facilities. "We believe that this approach balances the interests of all of our creditors."

Toledo-based Owens Corning manufactures building materials systems and composite systems.

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