J.P. Morgan To Reap $100M In Owens Corning Deal

Law360, New York (May 12, 2006, 12:00 AM EDT) -- J.P. Morgan Securities Inc. may turn out to be the biggest winner in Owens Corning’s asbestos-related bankruptcy case, with the investment bank primed to receive $100 million for its part in the beleaguered fiberglass manufacturer’s upcoming Chapter 11 exit.

Toledo-based Owens Corning revealed the arrangement on Wednesday, signaling that J.P. Morgan could walk away millions of dollars richer if the Delaware bankruptcy court approves a proposed “backstop” arrangement.

Under the backstop deal, J.P. Morgan would buy any shares left over after the company’s bondholders have a...
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