Pittsburgh Corning Emerges from Chapter 11 Reorganization
Pittsburgh Corning recently announced that its reorganization plan has become effective.
Pittsburgh Corning Corp. recently announced that its Modified Third Amended Plan of Reorganization has become effective as of April 27, 2016, and the company has emerged from Chapter 11 bankruptcy. Pittsburgh Corning has operated under asbestos-related Chapter 11 protection since April 16, 2000.
The Pittsburgh Corning Modified Third Amended POR establishes the Pittsburgh Corning Asbestos Personal Injury Settlement Trust. Scheduled to receive assets valued in excess of $3.5 billion, the trust will be among the largest asbestos trusts in the country. It assumes all asbestos-related liabilities related to Pittsburgh Corning and resolves all asbestos personal injury claims, including those filed in the future. The trust is to be funded by contributions of Pittsburgh Corning, its shareholders (PPG Industries Inc. and Corning Inc.) and participating insurance carriers.
Prior to emergence from Chapter 11, Pittsburgh Corning and Pittsburgh Corning Europe were equity affiliates of PPG Industries, Inc. and Corning, Inc. Effective as of the end of April, Pittsburgh Corning Corp. will be owned by the Pittsburgh Corning Asbestos Personal Injury Settlement Trust. Pittsburgh Corning Europe was not subject to Chapter 11, but its shares will be contributed to the trust as part of the company’s Plan of Reorganization by early June 2016.
The company’s Modified Third Amended Plan of Reorganization was confirmed by the U.S. Bankruptcy Court for the Western District of Pennsylvania on May 24, 2013, and affirmed by the U.S. District Court of Pennsylvania on September 30, 2014. Appeals were finally resolved on January 7, 2016, which allowed consummation of the Plan.
“During Chapter 11, Pittsburgh Corning operated with two major objectives,” said James R. Kane, chairman and CEO. “For the first five years, when emergence seemed to be a few years in the offing, the company focused on protecting and preserving the assets, which would become part of the Asbestos Trust. When it became apparent that Pittsburgh Corning’s time in bankruptcy was going to be extended, our focus expanded to include strategic actions designed to reinvent our business to better serve customers worldwide and create a platform for sustained profitable growth for our future shareholders. Today, Pittsburgh Corning has achieved both goals. After 16 years of operating under Chapter 11, the Asbestos Personal Injury Settlement Trust can begin helping people and families. The company has performed well and is eager to move past Chapter 11 and toward a promising future.”
For more information, visit www.pghcorning.com.