New Asbestos Trust Eases Burden for Owens Corning

October 25, 2006 - Three lawyers have been appointed to oversee the new Owens Corning/Fibreboard asbestos injury trust fund, which will allow the embattled Ohio company to emerge from bankruptcy.

The trust, which at $5 billion is larger than similar trusts established by other corporations, will grant money to those who meet certain medical criteria in their claims against the giant insulation and building products company.  Hundreds of thousands of claims have been filed against Owens Corning (OC), most by individuals who are suffering from fatal lung diseases.

The Toledo Blade reports that this solution will be less costly than running lawsuits through the court system, though it does involve compensating corporate lawyers and others needed to see that the trust system runs smoothly.

It is expected that the trust will pay $.40 on the dollar for Owens Corning claims and only $.25 on the dollar for Fibreboard claims.  OC bought Fibreboard just a few years before they filed Chapter 11 bankruptcy.  These numbers will give asbestos victims just a fraction of what they were seeking from the courts.

The largest claims, according to the newspaper report, will go to victims of mesothelioma, a deadly cancer that results in a quick but agonizing death for those who suffer from the disease.  They will receive about $215,000 each if they have strong medical evidence and can prove they worked with the company's products.  The least severe claims will be paid between $240 and $400. 

Claims are to be paid in the order in which they were submitted, with exceptions for “hardship cases”, say the OC attorneys.  These cases may include those who are seriously ill and in need of money for medical treatment or other necessities.