O-I Glass’s subsidiary, Paddock Enterprises has reached an agreement for a reorganisation plan under section 524(g) of the Bankruptcy Code.
Paddock, the Official Committee of Asbestos Personal Injury Claimants (ACC), and the legal representative for the future asbestos personal injury claimants (FCR) all agreed to accept the terms of a mediator’s proposal regarding the reorganisation.
It follows a court-approved mediation process in connection with Paddock’s ongoing Chapter 11 case.
Andres Lopez, CEO of O-I Glass, said: “From the beginning of the Chapter 11 process, we have been committed to supporting a resolution of Paddock’s legacy asbestos liabilities in a manner that ensures claimants are treated fairly while providing finality and certainty for O-I Glass and Paddock.
“This agreement is a positive and significant step toward achieving those objectives. O-I Glass and Paddock look forward to working cooperatively with the ACC and FCR to implement the terms of the agreement.
“We believe this is the best path to not only equitably address Paddock’s legacy liabilities but also move expeditiously toward emergence.”
Under the terms of the accepted proposal, the total consideration to fund a section 524(g) trust on the effective date of a confirmed plan of reorganisation would be $610 million.
Additional information about the Chapter 11 case can be found at: https://cases.primeclerk.com/Paddock