USG requests exclusivity extension in light of asbestos claims dispute

By Caroline Salls

Pittsburgh, Dec. 30 - USG Corp. requested an extension to its exclusive periods to file a plan of reorganization and solicit votes on the plan, according to a Friday filing with the U.S. Bankruptcy Court for the District of Delaware.

The company wants to extend its exclusive plan filing period to June 30, 2006 from Dec. 31 and the solicitation period to Sept. 1, 2006 from March 1.

According to the motion, the vastly different perspectives regarding the estimated amount of asbestos personal injury claims "have made the path to emergence from these Chapter 11 cases a difficult one."

Nevertheless, USG said the parties are now moving steadily down that path, as they are engaged in discovery in the estimation proceedings and the district court has indicated that it intends to conduct the hearings on estimation shortly after the conclusion of discovery.

Once the court has estimated the claims liability, the company said it will be able to develop and file a plan of reorganization that will fairly address the interests of all stakeholders.

A hearing is scheduled for Feb. 21.

USG, a Chicago-based building materials company, filed for bankruptcy June 25, 2001. Its Chapter 11 case number is 01-02094.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.