Asbestos Drives Owens Corning Into Bankruptcy

Abstract

Building and composite materials maker Owens Corning has filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code. A flood of new liabilities related to its long-dismantled asbestos products business and cooling demand for its current portfolio were more than the company could bear. Owens Corning has already agreed to pay $5.2 billion to people whose health has been impaired because of the use of asbestos insulation it sold under the Kaylo brand name between 1952 and 1972. The amount covers more than 320,000 claims evaluated before and after a national settlement program was set up almost two years ago. Owens Corning has an additional 150,000 claims pending under the national settlement program—totaling about $1.3 billion—and another 30,000 claims from people who are not participating in the program. The total payout for these suits has yet to be resolved. The company is also a victim of rising interest rates and easing demand for its ...