USG asbestos property damage committee objects to plan solicitation in light of excluded voting class

By Caroline Salls

Pittsburgh, March 17 - USG Corp.'s official committee of asbestos property damage claimants objected to the company's request for approval of the plan of reorganization solicitation materials, saying an additional asbestos claimants' class should be allowed to vote on the plan, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.

According to the objection, despite the company's "bold assertion" in the plan that only one asbestos personal injury claims class is impaired and entitled to vote, asbestos personal property damage claimants are also impaired because of the plan's failure to provide for payment of post-bankruptcy interest in accordance with bankruptcy law.

"Accordingly, [USG] must solicit the votes of holders of class 8 claims in respect of the plan," the committee said in the objection.

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

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