Owens Corning Emerging from Bankruptcy

September 21, 2006 - Despite the impassioned protests of dozens of asbestos victims, a federal judge approved a plan to allow Toledo, Ohio-based Owens Corning to emerge from bankruptcy within the next month. Six years ago, the manufacturer of building materials sought bankruptcy protection amidst billions of dollars in health claims related to its asbestos products.

According to an article written by the Associated Press, Judge Judith Fitzgerald overruled objections from many parties sickened with asbestos disease and gave the company the nod for the implementation of their plan. 

The article notes that many asbestos victims spoke to the court via speakerphone, “asking that their claims be expedited and that they not have to wait for the establishment of a special trust.”

The approved plan shifts Owens Corning's $7 billion in asbestos liabilities off company books and into a trust to be established for the plaintiffs.  It is expected that the company will pay more than $5 billion to the claimants.

The judge said that if each claim were handled individually through the court system, the company would never emerge from bankruptcy and many claimants would never receive compensation.

Attorneys for Owens Corning said they believe the plan is fair to both creditors and asbestos claimants.