A federal judge ruled 31/03/05 that the potential liabilities for asbestos damages to which building materials maker Owens Corning is exposed amount to US$7bn. The ruling by US District Judge John Fullam is an important action in Owens Corning's long-running bankruptcy. Financial creditors argued that the firm's asbestos liabilities should be set between $2-3BN. Lawyers for asbestos claimants asked for an estimate of $11BN from the judge, who took extensive evidence on the matter. The asbestos estimation proceedings, as the liability amount set by the judge establishes a baseline for negotiations on the firm's Chapter 11 reorganization plan. OC expects to placate both financial & personal injury creditors with shares of equity in its still successful business operations. The higher the amount estimated for asbestos liability, the more equity OC will allocate.
