Owen Corning to settle all claims on asbestos damage
The largest ever settlement for pollution caused by asbestos was made on May 10, 2006, when the world's largest producer of insulation products agreed to a payout.
Owen Corning announced a us $5.2 billion agreement to settle all present and future claims on asbestos damage and to protect itself from bankruptcy without any further obligations. The company also has to pay around us $2.27 billion to its debt holders.
Reports say Owen Corning faces over 180,000 claims already and could face well over half a million more in future because of the damage caused by asbestos insulation sold by the company between the 1950s and the 1970s.
The company will deposit us $4.29 billion in cash into a trust for people adversely affected by asbestos and also give 28.6 million shares to the trust once it emerges from bankruptcy.