Paddock Enterprises, LLC (“Paddock”), a wholly owned subsidiary of O-I Glass, Inc., announced that it has received approval from the United States Bankruptcy Court for the District of Delaware of its disclosure statement in connection with soliciting votes on its plan of reorganization.
The Plan of Reorganization, which is jointly proposed with the Asbestos Claimants’ Committee, the Future Claimants’ Representative, and O-I Glass, would bring a permanent resolution to all current and future asbestos personal injury claims against Paddock.
Andres Lopez, CEO of O-I Glass, commented, “We are pleased that the Court has approved Paddock’s Disclosure Statement, enabling Paddock to take a major step forward toward resolving its legacy liabilities in a just manner for all involved parties. This is an important and positive step in the Chapter 11 process as Paddock moves towards emergence.”
The proposed Plan’s centrepiece is a trust established under section 524(g) of the Bankruptcy Code (the “Asbestos Trust”) that will process and pay Asbestos Claims pursuant to Asbestos Trust Distribution Procedures (“TDP”). In exchange for funding the Asbestos Trust, Paddock and its parent company, O-I Glass, as well as certain additional parties (collectively, the “Protected Parties”), will be protected by an injunction that will prohibit assertion of Asbestos Claims against the Protected Parties and will channel all such Asbestos Claims to the Asbestos Trust. As of the effective date, the Asbestos Trust will be funded with USD 610 million in cash and other consideration.
A confirmation hearing relating to approval of Paddock’ Plan is presently scheduled to begin on May 16, 2022, and Paddock hopes to emerge from Chapter 11 shortly thereafter.