Owens Corning Provides Update on Financial Reorganization
TOLEDO, Ohio, April 25 - Owens Corning (NYSE:OWC) today provided an update on its financial reorganization activities, six months after the Company and 17 of its domestic subsidiaries filed for protection under Chapter 11 of the US Bankruptcy Code, and reaffirmed its commitment to a number of long-planned initiatives designed to support the Company's growth.
Owens Corning said it is proceeding smoothly with the Chapter 11 reorganization process, led by Maura Abeln Smith, senior vice president, chief restructuring officer, general counsel and secretary, and a reorganization team pulled from a variety of departments throughout the Company. The sole focus of this team is to manage the Chapter 11 process, enabling Owens Corning to meet all requirements of financial restructuring as efficiently and thoroughly as possible.
"Our chief responsibility is to manage the Chapter 11 process and develop a plan of reorganization to restructure the Company while resolving, once and for all, our asbestos liability," said Maura Abeln Smith. "Financial reorganization entails a comprehensive review of every aspect of our business. We are on track to complete this task, and develop and obtain approval for a comprehensive Plan of Reorganization," Smith said.
The Company expects that a Futures Representative for asbestos claimants will be selected in the second quarter. "This is the next important step in achieving our restructuring goals," Smith said.
In addition, the Company outlined and reaffirmed its commitment to several long-planned initiatives designed to support its growth:
- In January of this year, Owens Corning completed the installation of a proprietary technology at its Delmar, NY, fiberglass insulation plant. This technology represents the Company's most productive and lowest cost technical platform for the manufacture of fiberglass insulation. Since its installation in the Delmar facility, new records for productivity and quality have been achieved.
- In May 2001, Cultured Stone, an Owens Corning business and the world's leading producer of manufactured stone veneer and related trim products, will open a new facility in Chester, SC. The 200,000-square- foot plant will be the most advanced facility in the world for the production of manufactured stone veneer and will employ up to 300 people.
- In the third quarter of 2001, Owens Corning will open its new Fiberteq LLC facility. Formed as a joint venture with Canada's IKO Industries, Fiberteq will employ the latest technology to manufacture high quality wet-formed glass fiber mat used primarily in the production of asphalt roofing shingles. Located in Danville, IL, the facility will employ up to 70 people.
- A new production line at the Irving, TX, Roofing Plant provides a state-of-the-art manufacturing process for laminated shingles.
- Owens Corning announced its intent to renovate the Company's oldest fiberglass insulation facility, located in Newark, OH. The "Newark Reinvention" involves significant investment by the Company to upgrade Newark's facilities to world-class capabilities. Infrastructure will be improved, outdated buildings and equipment torn down, and a complete program of modernization undertaken. It is expected that the Reinvention Plan will not only improve Newark's cost position, but also enhance quality control, productivity and safety.
- The Company is also generating a clear focus on innovation and speed to market. Its Basement Finishing System, Visionaire FX(TM) and HOMExperts(TM) are gaining momentum and positioning the Company for future growth and profitability. Its Composites business, with operations around the world, has been working closely with the major automotive companies to provide composite solutions. For example, the new composite pick-up truck box as well as the Silentex(TM) muffler system are leading the way to future global growth.
Owens Corning is a world leader in building materials systems and composites systems. The Company has sales of $5 billion and employs approximately 20,000 people worldwide. For more information, please visit Owens Corning's Web site at: www.owenscorning.com
On October 5, 2000, Owens Corning and 17 United States subsidiaries filed voluntary petitions for relief under Chapter 11 of the U. S. Bankruptcy Code in the U. S. Bankruptcy Court for the District of Delaware. The Debtors are currently operating their businesses as debtors-in-possession in accordance with provisions of the Bankruptcy Code. The Chapter 11 cases of the Debtors are being jointly administered under Case No. 00-3837 (JKF). The Chapter 11 cases do not include other U. S. subsidiaries of Owens Corning or any of its foreign subsidiaries. The Debtors filed for relief under Chapter 11 to address the growing demands on Owens Corning's cash flow resulting from its multi- billion dollar asbestos liability. Owens Corning is unable to predict at this time what the treatment of creditors and equity holders of the respective Debtors will be under any proposed plan or plans of reorganization. Pre- petition creditors may receive under a plan or plans less than 100% of the face value of their claims, and the interests of Owens Corning's equity security holders may be substantially diluted or cancelled in whole or in part. It is not possible at this time to predict the outcome of the Chapter 11 cases, the terms and provisions of any plan or plans of reorganization, or the effect of the Chapter 11 reorganization process on the claims of the creditors of the Debtors, or the interests of Owens Corning's equity security holders.
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected in these statements. Further information on factors that could affect the Company's financial and other results is included in the Company's Forms 10-Q and 10-K, filed with the Securities and Exchange Commission.