17 May 2013 17:37 [Source: ICIS news]
HOUSTON (ICIS)--A judge issued an interim order confirming the reorganisation plan of Pittsburgh Corning, a joint venture that filed for bankruptcy protection under Chapter 11 in 2000, one of the partners said on Friday.
PPG Industries and Corning each own a 50% stake in the company, which makes glass block and foamglass insulation.
Pittsburgh Corning filed for bankruptcy protection in the Western Pennsylvania District as a result of lawsuits filed alleging personal injury from exposure to asbestos. It made asbestos-containing pipe insulation from 1962-1972.
Under the terms of the reorganisation plan, any current and future personal-injury asbestos claims again PPG will be channeled to a trust for resolution, the company said.
PPG will contribute about $825m (€644m) into the trust under a payment schedule that stretches to 2023, the company said. In addition, PPG will contribute 1.4m shares of the company stock and give up its shares in Pittsburgh Corning.
Insurance carriers will contribute about $1.7bn under a payment schedule that stretches to 2027, PPG said.
The court set a 21 May deadline for any motions for reconsideration, PPG said. The court will then hear those motions on 23 May, after which it will issue a final confirmation order.
That final order will be subject to appeals, PPG said. If the confirmation order is upheld, then the joint venture's reorganisation plan will become effective.
($1 = €0.78)
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