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Ricky Bagolie
Ricky Bagolie
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Owens Corning To Emerge From Bankruptcy and Pay Asbestos Victims

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Owens Corning announced that Judge Judith Fitzgerald of the United States Bankruptcy Court for the District of Delaware approved the company’s Plan of Reorganization. The Bankruptcy Court’s approval of the plan paves the way for Owens Corning to emerge from bankruptcy by the end of October 2006 while making arrangements to compensate the thousands of the victims exposed to it’s asbestos products.

According to the Plan of Reorganization,

The agreement assumes a total distributable value of $8.627 billion, consisting of the total enterprise value of $5.858 billion, assumed excess cash of $1.432 billion, and Fibreboard trust and asbestos trust assets of $1.491 billion, less existing debt of $55 million and $99 million in assumed value of new shares reserved for employee incentive programs.

Asbestos is a deadly fiber that causes lung disease and increases the risk of cancers including mesothelioma.