PPG Industries PPG today announced that the United States Bankruptcy
Court for the Western District of Pennsylvania issued a revised opinion and
final order confirming the current Pittsburgh Corning plan of reorganization.
The court previously issued an opinion and interim order confirming the plan
of reorganization on May 16, 2013. PPG and Corning Incorporated are each 50
percent shareholders of Pittsburgh Corning, which filed for Chapter 11
bankruptcy protection in 2000.
Under the terms of the current plan, which includes the PPG asbestos
settlement arrangement, all current and future personal injury claims against
PPG relating to exposure to asbestos-containing products manufactured,
distributed or sold by Pittsburgh Corning will be channeled to a trust for
resolution. The final confirmation order will be subject to a customary
appeals process and, if the confirmation order is upheld and all conditions
are met, the plan of reorganization would become effective. Under the plan of
reorganization, PPG and its participating insurers are to make their initial
payments to the trust 30 business days after the plan becomes effective and
all conditions to funding have been met.
Under the PPG settlement arrangement, PPG's obligation to the trust consists
of cash payments totaling approximately $825 million to be made according to a
fixed payment schedule over a period ending in 2023, about 1.4 million shares
of PPG stock or cash equivalent, and surrendering its shares in Pittsburgh
Corning and Pittsburgh Corning Europe. At March 31, 2013, PPG's accrued
liability related to the settlement arrangement, including the pre-tax present
value of the cash payments, totaled approximately $800 million of which
approximately $550 million was the current portion. In addition to PPG's
obligation to the trust, the company's participating historical insurance
carriers are to make cash payments to the trust of approximately $1.7 billion
in a series of payments ending in 2027.
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