Building materials giant Owens Corning has told the bankruptcy court that it will file an amended Chapter 11 plan and disclosure statement by 31 December 2005. In a request to the court on 26 Septembe…
Building materials giant Owens Corning has told the bankruptcy court that it will file an amended Chapter 11 plan and disclosure statement by 31 December 2005. In a request to the court on 26 September 2005, the company also asked for an extension to its exclusive solicitation period to lobby for creditors“ support to 31 January 2006. Judge Judith Fitzgerald said that by the close of 2005 she wants Owens Corning to file an amended plan outlining how its debts will be paid. The company originally proposed a plan with its asbestos committee and futures representative panel on 28 March 2003. It has been operating under Chapter 11 bankruptcy protection since 2000. A hearing on the company“s request has been scheduled for 24 October 2005 in the US Bankruptcy Court in Wilmington, Delaware. Objections are due 14 October 2005, according to court papers. If the court were to turn down Owens“ request, its exclusive solicitation period would end around 20 November 2005. Bankruptcy law requires companies operating under Chapter 11 to submit a plan outlining how creditors will be paid. Exclusive periods that prevent other parties from submitting such plans to the court allow the company to keep control of the restructuring process without outside interference. In court papers, Owens Corning said that an exclusive period that runs out on 31 January 2005 would be unlikely to give it enough time to gain support from its creditor groups for an amended plan filed on 31 December 2005. However, the company anticipates that the court may choose to grant further extensions once it is known what it will take to bring the amended plan to the confirmation stage. On 2 December 2003, the court approved a disclosure statement outlining the plan“s terms in non-legal language for creditors: a series of legal challenges in the case has prevented circulation of the proposal to creditors.