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Perrysburg, Ohio, January 12, 2022 (GLOBE NEWSWIRE) — Instant release
OI Glass, Inc. (“OI Glass” or “OI”) today announced that its wholly-owned subsidiary, Paddock Enterprises, LLC (“Paddock”), has filed its plan of reorganization (the “Plan”) and related disclosure statement (as 2020 A “Disclosure Statement” was filed with the U.S. Bankruptcy Court for the District of Delaware (the “Court”) as part of Paddock’s Chapter 11 bankruptcy case initiated on January 6. The plan, once confirmed by the court, will result in the permanent settlement of all current and future Asbestos Personal Injury Claims (“Asbestos Claims”). This program is brought together by the “Program Supporters” who are the statutory board for OI Glass, the Official Commission of Asbestos Personal Injury Claimants (“ACC”), Paddock, and future Asbestos Personal Injury Claimants Representative (“FCR”).
Andres Lopez, CEO of OI Glass, said: “We are pleased that Paddock has taken an important step towards its goal of resolving its legacy debt in a fair and effective manner for claimants, and that OI Glass has and Paddock provided finality. The plan is a favourable outcome for all parties and we look forward to its implementation as the paddock moves forward.”
At the heart of the plan is a trust established under Section 524(g) of the Bankruptcy Code (the “Asbestos Trust”) that will process and pay asbestos claims under the Asbestos Trust Distribution Process (“TDP”). In exchange for funding the Asbestos Trust, Paddock and its parent company, OI Glass, and certain other parties (collectively, the “Protected Parties”) will be protected by an injunction prohibiting asbestos claims against the Protected Parties and all such Asbestos claims are submitted to the Asbestos Trust.
The Asbestos Trust will receive $610 million in funding on the plan’s effective date. The plan comes after extensive informal negotiations among plan proponents and more than a month of a formal mediation process. A hearing to consider approval of the disclosure statement is scheduled for February 16, 2022 in bankruptcy court. Paddock expects a confirmation hearing for the program to be held in the second quarter of 2022.
Paddock was represented in the Chapter 11 case by Latham & Watkins LLP and Richards, Layton & Finger, PA, while OI Glass was represented by Morris Nichols Arsht & Tunnell LLP.
This press release is not intended to solicit a vote on the program. Program and Disclosure Statements and any exhibits,…
The full story is available on Benzinga.com
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