Owens Corning Pursues Restructuring, Growth Initiatives

Apr 25, 2001, 01:00 ET from Owens Corning

    TOLEDO, Ohio, April 25 /PRNewswire/ -- 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.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X87748325
 
 

SOURCE Owens Corning
    TOLEDO, Ohio, April 25 /PRNewswire/ -- 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.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X87748325
 
 SOURCE  Owens Corning

RELATED LINKS

http://www.owens-corning.com