February 1, 2006—USG Corporation has reached an agreement to resolve all present and future asbestos-related personal injury claims, enabling the company and its subsidiaries to take a significant step toward emerging from bankruptcy, the company has announced.
The agreement was reached with the Asbestos Personal Injury Claimants Committee and the court-appointed Representative for Future Asbestos Claimants, and is also supported by the committees representing both unsecured creditors and stockholders. USG and its subsidiaries filed Chapter 11 bankruptcy petitions on June 25, 2001 to resolve asbestos claims in a fair and equitable manner and protect the long-term value of the companys businesses.
Under the agreement, USG will establish and fund a personal injury trust to pay asbestos personal injury claims. USGs bank lenders, bondholders and trade suppliers will be paid in full with interest. Stockholders will retain ownership of the company. Financing for the plan is expected to be provided from USGs cash on hand, a $1.8 billion rights offering to existing stockholders backstopped
Stockholders will retain ownership of USG, subject to the rights offering described below.
The plan is subject to numerous conditions, including court approvals, so there necessarily can be no assurance that it will be completed or that the terms will not be changed, perhaps materially. Nonetheless, the Company has targeted emergence from Chapter 11 for the third quarter of 2006.
For more than 100 years, USG has manufactured a comprehensive line of wall, ceiling and floor products and systems. For more on USG and the settlement, visit the USG Web site.
