USG gets court approval for backstop to rights offering

New York, Feb. 23 - USG Corp. said U.S. Bankruptcy Court for the District of Delaware approved the backstop agreement for the $1.8 billion rights offering that is part of its proposed plan of reorganization.

Berkshire Hathaway Inc. has agreed to exercise any rights not taken up by existing stockholders and will receive a $67 million fee for its commitment.

The plan is based on an agreement to resolve the asbestos personal injury claims in its Chapter 11 reorganization case.

USG will establish and fund a personal injury trust to pay asbestos personal injury claims.

Bank lenders, bondholders and trade suppliers will be paid in full with interest.

Stockholders will retain ownership of the company.

Financing for the plan is expected to be provided from USG's cash on hand, the $1.8 billion rights offering to existing stockholders backstopped by Berkshire Hathaway, tax refunds and new long-term debt.

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

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