PERRYSBURG, Ohio, April 26, 2021 (GLOBE NEWSWIRE) — O-I Glass today announced that its wholly owned subsidiary, Paddock Enterprises, LLC, has reached an agreement in principle for a consensual plan of reorganization under section 524(g) of the Bankruptcy Code. Paddock, the Official Committee of Asbestos Personal Injury Claimants, and the legal representative for the future asbestos personal injury claimants all agreed to accept the terms of a mediator’s proposal regarding a potential consensual plan of reorganization for Paddock. O-I Glass supports the agreement among Paddock, the ACC and the FCR that follows a successful court-approved mediation process conducted by Kenneth Feinberg and the Honorable Layn R. Phillips in connection with Paddock’s ongoing Chapter 11 case.
“From the beginning of the Chapter 11 process, we have been committed to supporting a resolution of Paddock’s legacy asbestos liabilities in a manner that ensures claimants are treated fairly while providing finality and certainty for O-I Glass and Paddock. This agreement is a positive and significant step toward achieving those objectives. O-I Glass and Paddock look forward to working cooperatively with the ACC and FCR to implement the terms of the agreement. We believe this is the best path to not only equitably address Paddock’s legacy liabilities but also move expeditiously toward emergence,” said Andres Lopez, CEO of O-I Glass.
Under the terms of the accepted proposal, the total consideration to fund a section 524(g) trust on the effective date of a confirmed plan of reorganization would be $610 million. The agreement is subject to definitive documentation and satisfaction of certain conditions including, but not limited to, court approval of a plan of reorganization for Paddock that will channel all current and future asbestos personal injury claims against Paddock into a trust created under 11 U.S.C. § 524(g) and establish an injunction protecting Paddock, O-I Glass, and their affiliates from assertions of current and future liability from such channeled claims.
Paddock is represented in the Chapter 11 case by Latham & Watkins LLP and Alvarez & Marsal, and O-I Glass is represented by Morris Nichols Arsht & Tunnell LLP.
Additional information about the Chapter 11 case can be found at: https://cases.primeclerk.com/Paddock
O-I Glass news releases are available on the O-I Glass website at www.o-i.com.
About O-I Glass
At O-I Glass, Inc. (NYSE: OI), we love glass and we’re proud to be one of the leading producers of glass bottles and jars around the globe. Glass is not only beautiful, it’s also pure and completely recyclable, making it the most sustainable rigid packaging material. Headquartered in Perrysburg, Ohio (USA), O-I is the preferred partner for many of the world’s leading food and beverage brands. We innovate in line with customers’ needs to create iconic packaging that builds brands around the world. Led by our diverse team of more than 25,000 people across 72 plants in 20 countries,
