Ceramic Industry News

USG Receives Approval of First-Day Orders in Chapter 11 Case

July 3, 2001
/ Print / Reprints /
ShareMore
/ Text Size+
USG Corp. recently announced that it has received bankruptcy court approval to, among other things, pay pre-petition and post-petition employee wages, salaries and benefits during its voluntary Chapter 11 case. As previously announced, USG and its major U.S. subsidiaries filed voluntary petitions for reorganization under Chapter 11 of the Bankruptcy Code on June 25, 2001, to manage the growing asbestos litigation costs of its United States Gypsum Co. subsidiary and to resolve asbestos claims in a fair and equitable manner. The court also approved $150 million of interim debtor-in-possession (DIP) financing for immediate use by the company to continue operations, pay employees, and purchase goods and services going forward. In conjunction with the filing, USG received commitments for up to $350 million in DIP financing from JP Morgan Chase to supplement liquidity and fund operations during the restructuring process. A final hearing on the DIP agreement is expected to occur in 30 to 60 days. The court also granted approval for the company to honor customer programs in place at the time of the filing, including rebates, credits and discounts on previously purchased goods.

William C. Foote, chairman, president and chief executive officer, said that USG's operations continue without interruption during the Chapter 11 process. "Our operations remain open for business and will maintain their commitment to safety, and to providing quality products and superior service to their customers. Vendors will be paid for all goods furnished and services provided after the filing. Employee wages and benefit programs will continue as before." USG and its subsidiaries filed their voluntary petitions in the U.S. Bankruptcy Court for the District of Delaware in Wilmington. The filing also included U.S. subsidiaries United States Gypsum Co., USG Interiors, Inc. and L&W Supply Corp. USG's international operations were excluded form the filing.

Additional information about the company's restructuring is available at http://www.usg.com.

Did you enjoy this article? Click here to subscribe to Ceramic Industry Magazine.

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

In-Depth Features

These articles detail innovative advanced ceramic and glass materials and technologies.

Podcasts

Sapphire: An Extreme Performer

Ian Doggett of Goodfellow and CI Editor Susan Sutton discuss the benefits and opportunities provided by industrial sapphire.

More Podcasts

THE MAGAZINE

Ceramic Industry Magazine

CI April 2014 cover

2014 April

Our April issue features details on advanced materials such as ceramic matrix composites and piezoelectric ceramics, among many others. Be sure to check it out!

Table Of Contents Subscribe

THE CERAMIC INDUSTRY STORE

M:\General Shared\__AEC Store Katie Z\AEC Store\Images\Ceramics Industry\handbook of advanced ceramics.gif
Handbook of Advanced Ceramics Machining

Ceramics, with their unique properties and diverse applications, hold the potential to revolutionize many industries, including automotive and semiconductors.

More Products

Clear Seas Research

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications,Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

Directories

CI Data Book July 2012

Ceramic Industry's Directories including Components, Equipment Digest, Services, Data Book & Buyers Guide, Materials Handbook and much more!

STAY CONNECTED

facebook_40px twitter_40px  youtube_40pxlinkedin_40