PPG in Pittsburgh has filed a new plan for reorganization in US Bankruptcy Court for it’s company Pittsburgh Corning Corp and the new plan includes a trust for asbestos exposure related injuries.
In 2006 PPG had a plan for reorganization rejected by Bankruptcy Court Judge Judith Fitzgerald. The original plan also included a trust that had been setup for asbestos exposure victims as well, but it was the trust that held the plan up. In the original plan the trust included asbestos claims that weren’t against Pittsburgh Corning and this caused Fitzgerald to reject the plan.
The amended plan will also include a 5 million trust that will fulfill claims against Pittsburgh Corning Corp. PPG will also hold 5 million in reserve for asbestos related claims that will not be handled by the trust.
This amended plan addresses the issues raised by the court in its 2006 opinion on the matter, and while we continue to believe PPG is not responsible for injuries caused by Pittsburgh Corning products, this amended plan would permanently resolve PPGs asbestos liabilities associated with Pittsburgh Corning, said James C. Diggs, PPGs general counsel and secretary, in a statement.
The newly proposed deal shows PPG’s obligation to the trust consists of cash payments that total to 5 million paid over a 15-year period, about 1.4 million shares of PPG common stock or cash equivalent, and its shares held in Pittsburgh Corning and Pittsburgh Corning Europe. PPG and Corning have co-owned Pittsburgh Corning since 1937.