Pittsburgh Corning Corporation, a global manufacturer of sustainable, high performance glass products for the building, energy and industrial markets, announced that its Modified Third Amended Plan of Reorganization was confirmed by the U.S. Bankruptcy Court for the Western District of Pennsylvania. The confirmation leads the company one step closer to emerging from Chapter 11 bankruptcy. Pittsburgh Corning has operated under Chapter 11 protection since April 16, 2000.
Between 1964 and 1972, Pittsburgh Corning manufactured, marketed and sold Unibestos, an asbestos pipe insulation product it acquired from Union Asbestos and Rubber Company. The company manufactured Unibestos at its plants in Tyler, Texas and Port Allegany, Pennsylvania. While the Pittsburgh Corning revenues for this product averaged less than $3 million annually, the company was named as a defendant in asbestos-related lawsuits, defending and resolving more than 200,000 claims. Pittsburgh Corning sought Chapter 11 protection in 2000, when it became apparent that defending and settling an additional 235,000 claims would exhaust company resources before they could be resolved.
The newly confirmed Plan of Reorganization establishes a trust valued in excess of $3.5 billion to assume all asbestos-related liabilities and resolve all asbestos personal injury claims. The trust will be funded by Pittsburgh Corning, its shareholders PPG Industries Inc. and Corning Incorporated, and participating insurance carriers.
"The trust is intended to help support the people and families who were harmed by asbestos," said Phillip M. Martineau, Chairman and CEO of Pittsburgh Corning. The confirmation of the Plan paves the way for the next step in the process: review and affirmation of the Plan by the U.S. District Court for the Western District of Pennsylvania.
"Pittsburgh Corning is making progress. While the legal work continues and our lengthy Chapter 11 process is not yet fully concluded, the confirmation of our Plan of Reorganization is a turning point, leading us closer to the consummation of the Chapter 11 proceedings," said Martineau. "We thank our customers and our employees, shareholders, suppliers and business partners, whose loyalty has been instrumental in keeping Pittsburgh Corning stable and competitive during the past 13 years. Their dedication has allowed the Company to continue providing premium products and support services. Pittsburgh Corning today has built a strong foundation for continued growth, and we look forward to our final emergence from bankruptcy."