Bondholders, Insurers Oppose Owens Corning Plan

Law360, New York (March 17, 2006, 12:00 AM EST) -- Following in the footsteps of shareholders, the bondholders and insurers of Owens Corning have taken aim at the company’s proposed Chapter 11 reorganization plan.

Certain equity holders have opposed the plan, claiming that it is based on an “improper settlement” with the company’s creditors that would allow the lenders to recover 150% of their claims.

The bondholders and insurers, including Lehman Brothers, King Street Capital Management, Century Indemnity Co. and Central National Insurance Co., are seeking to block the plan from being sent out for creditor...
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