SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): June 23, 1999.
OWENS CORNING
(Exact name of registrant as specified in its charter)
Delaware 1-3660 34-4323452
State or other (Commission (IRS Employer
jurisdiction File Number) Identification
of incorporation) No.)
One Owens Corning Parkway 43659
Toledo, Ohio (Zip Code)
(Address of principal executive offices)
(419) 248-8000
(Registrant's telephone number, including area code)
Item 5. Other Events.
(a) June 23, 1999 Press Release. On June 23, 1999,
Owens Corning issued the press release attached
hereto as Exhibit 99. Such press release is
incorporated herein by this reference.
Item 7. Financial Statements and Exhibits
(c) Exhibits
The exhibit accompanying this report is listed in the
accompanying Exhibit Index.
SIGNATURES
Pursuant to the requirements of the Securities
Exchange Act of 1934, the Registrant has duly
caused this report to be signed on its behalf by
the undersigned, hereunto duly authorized.
OWENS CORNING
Registrant
By: /s/ Steven J. Strobel
Steven J. Strobel
Vice President and Controller
Dated: June 23, 1999
EXHIBIT INDEX
The following exhibit is filed herewith:
Exhibit No. 99. Press Release of Owens Corning
dated June 23, 1999.
EXHIBIT 99
Contact: Jules L. Vinnedge William K. Hamilton
Investor Relations Media Relations
419-248-7377 419-248-6190
U.S. Supreme Court Overturns
Fibreboard Global Class Action Settlement
TOLEDO, Ohio, June 23, 1999 - Owens Corning (NYSE: OWC)
announced today that the United States Supreme Court has
overturned the global class settlement of all asbestos personal
injury claims against its wholly owned subsidiary, Fibreboard
Corporation.
While the Court returned the case to the lower courts for
further proceedings, it appears unlikely that the settlement can
overcome the many hurdles for approving a limited-fund class
under Rule 23 (b)(1)(B), as set forth by the Court's opinion.
If, as expected, the global class settlement is finally
disapproved, Fibreboard's insurance settlement will become
effective. Under the insurance settlement, which received final
Court approval in 1997, Fibreboard will receive an insurance
settlement of approximately $1.9 billion, which will be used to
resolve Fibreboard's asbestos claims.
"To plan for this possible outcome, we included Fibreboard in
the Owens Corning National Settlement Program," said Glen H.
Hiner, chairman and chief executive officer. "The NSP provides
for the resolution of the vast majority of pending and future
Fibreboard claims, as well as Owens Corning claims."
Owens Corning and Fibreboard have negotiated long-term
agreements with more than 80 plaintiffs' firms that provide for
resolution of pending Owens Corning and Fibreboard cases and
establish a case processing arrangement to resolve future claims
without litigation. The Fibreboard portions of those agreements
are contingent on the class action settlement being finally
overturned.
More than 100,000 asbestos claims pending against Fibreboard
could be resolved under the National Settlement Program (NSP).
Payment of these claims would be made over the next five years,
with most payments occurring in 1999 through 2001.
Owens Corning announced its NSP in December 1998 and said it
signed agreements with more than 50 law firms resolving more
than 176,000 asbestos cases pending against the company. Since
then, more plaintiff law firms have signed agreements with the
company, bringing the total of participating law firms to more
than 80. The total number of resolved cases is now more than
188,000.
Background
- ----------
During 1993, Fibreboard, its insurers and representatives of a
class of future asbestos plaintiffs, entered into a global
settlement. Under this settlement, Fibreboard would have been
protected by an injunction from personal injury claims and would
have had no further asbestos personal injury liabilities.
On July 26, 1996, the United States Court of Appeals (Fifth
Circuit) affirmed the global settlement by a majority decision.
Opposing parties appealed the decision on June 27, 1997 to the
Supreme Court. The Supreme Court granted the petition, vacated
the Fifth Circuit's decision and remanded the case to the Fifth
Circuit Court for further consideration. On January 27, 1998, a
panel of the Fifth Circuit Court reaffirmed its prior decision
by a majority vote, again approving the global settlement. The
Supreme Court again granted certiorari, and an oral argument was
held on December 8, 1998.
Owens Corning is a world leader in building materials and glass
fiber composites systems. The company had 1998 sales of $5
billion and employs approximately 20,000 worldwide.
