USG asbestos personal injury committee wants to submit own plan

By Jeff Pines

Washington, Dec. 15 - USG Corp.'s asbestos personal injury committee and the asbestos futures representative oppose another extension for the company on its exclusive right to file a reorganization plan. The committee and representative want the exclusivity ended so they can file their own plan.

USG, a Chicago-based building materials company, wants to extend its exclusive right to file a reorganization plan to June 30, 2005 and its exclusive right to solicit votes to Aug. 31, 2005. Its exclusive period to file a plan was going to end Dec. 1 and its exclusive right to solicit votes ends Feb. 1.

The committee and Dean Trafelet, the futures representative, filed their response with the U.S. Bankruptcy Court for the District of Delaware Tuesday.

They say mediation failed because USG refused to accept the size of its asbestos liabilities and then filed a lawsuit against the committee and Trafelet.

The last time USG received an extension it was because there was hope of a consensual reorganization plan, they said. Since mediation failed, the committee and Trafelet believe there is no need for additional extensions.

A Jan. 24 hearing is scheduled.

USG filed for bankruptcy on June 25, 2001. Its Chapter 11 case number is 01-2094.

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