<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) December 22, 1994
Owens-Illinois, Inc.
(Exact name of registrant as specified in its charter)
Delaware 1-9576 22-2781933
(State or other (Commission (IRS Employer
jurisdiction of File No.) Identification No.)
incorporation)
Owens-Illinois Group, Inc.
(Exact name of registrant as specified in its charter)
Delaware 33-13061 34-1559348
(State or other (Commission (IRS Employer
jurisdiction of File No.) Identification No.)
incorporation)
One SeaGate, Toledo, Ohio 43666
(Address of principal executive offices) (Zip code)
Registrants' telephone number,
including area code: 419-247-5000
Exhibit Index -- Page 4
Page 1 of 6 pages
<PAGE>
Item 5. Other Events.
On December 22, 1994, Owens-Illinois, Inc. issued a
press release announcing the decision of the New Jersey Supreme
Court regarding the Company's United Insurance litigation. The
press release is set forth as Exhibit 99 hereto.
Item 7. Financial Statements and Exhibits.
(c) Exhibits
Exhibit 99 - Owens-Illinois press release dated Decemb-
er 22, 1994.
Page 2 of 6 pages
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrants have duly caused this report to be
signed on their behalf by the undersigned thereunto duly autho-
rized.
OWENS-ILLINOIS, INC.
OWENS-ILLINOIS GROUP, INC.
By (David G. Van Hooser)
----------------------
David G. Van Hooser
Vice President, Treasurer
and Comptroller
(Principal Accounting Officer)
Dated: December 22, 1994
Page 3 of 6 pages
<PAGE>
EXHIBIT INDEX
Exhibit
Number Exhibit Page
99 Owens-Illinois press release dated 5
December 22, 1994
Page 4 of 6 pages
<PAGE>
OWENS-ILLINOIS ANNOUNCES COURT DECISION AND PARTIAL SETTLEMENT
IN ASBESTOS INSURANCE CASE
Toledo, Ohio, December 22, 1994 -- Owens-Illinois, Inc. (NYSE: OI) today
announced that the Supreme Court of New Jersey has reversed and remanded for
further lower court proceedings the earlier court judgment that O-I is entitled
to seek reimbursement for asbestos-related claims up to the limits of insurance
policies issued to the company from 1977 to 1983.
Owens-Illinois also announced that just prior to the court decision it
concluded a settlement agreement with certain reinsurers in the case,
representing approximately 18 percent of total coverage limits. Pursuant to
that agreement, O-I will receive approximately $96 million.
In this litigation (Owens-Illinois, Inc. v. United Insurance Co., et al.,
Superior Court of New Jersey, Middlesex County), Owens-Illinois has been
seeking more than $600 million of insurance coverage for personal injury and
property damage lawsuits and claims.
The New Jersey Supreme Court's ruling concerned certain policy
interpretation issues, with the principal issue being the scope of liability of
the defendant insurers. The Court rejected arguments of the parties as well as
previous court rulings in other jurisdictions and determined that a special
master should be appointed to develop an equitable allocation among the
insurers and Owens-Illinois for coverage of O-I's asbestos-related losses.
Previous lower court judgments had found that O-I is entitled to full
reimbursement up to the policy limits. However, defendant insurers had
contended that O-I is entitled to reimbursement only for a specific portion of
claimant injuries that can be identified with the 1977-1983 period in which the
policies were in effect.
With regard to the continuous trigger theory of coverage, the Court
affirmed lower court judgments that the insurers are liable for claims if any
portion of the injury or property damage occurred during the applicable policy
year.
Thomas L. Young, Owens-Illinois executive vice president and general
counsel, said, "While we regret that, after 10 years of litigation, there was
not a definitive and favorable resolution of the issue of the scope of
liability of the defendant insurers, we believe that the special master
proceeding required by today's court decision will still result in the
confirmation of significant additional coverage for the company's asbestos-
related losses."
Page 5 of 6 pages
<PAGE>
Under the settlement agreement, which was reached prior to the New Jersey
Supreme Court's decision announced today, cash reimbursement for O-I's
asbestos-related claims will be provided at approximately 78.5% of coverage
limits. The agreement is with Owens Insurance, Ltd., (OIL), the primary
insurer providing coverage for O-I's asbestos-related claims, and with certain
of OIL's reinsurers.
Owens-Illinois will use the settlement proceeds of approximately $96
million for the reduction of bank debt incurred in paying asbestos claims.
The trial of all remanded issues in this litigation, including the new
requirement for a special master proceeding, is not expected to take place
before late 1995.
Mr. Young further stated, "We will make every effort to conclude this
special master proceeding and other remaining litigation issues as
expeditiously as possible. We also are undertaking a reassessment of our
insurance asset valuation in view of today's court decision and the partial
settlement of the litigation we have just effected."
Earlier in 1994, in response to new accounting guidelines governing
financial statement presentation of claims for insurance reimbursement, Owens-
Illinois recorded a $650 million insurance asset, representing its estimate of
the probable value of its claims for insurance reimbursement and coverage for
its asbestos-related losses.
Mr. Young added, "A reduction in this asset valuation will be necessary,
but we must complete our reassessment to determine the amount of such
reduction."
A former business unit of Owens-Illinois produced a high-temperature
insulating material containing asbestos from 1948 to 1958. O-I exited the
insulation business in April 1958. The number of asbestos cases against the
company has been reduced to 35,000 as of September 30, 1994 -- down from 43,000
at the end of 1993 and down from a high of 92,000 in 1991.
Page 6 of 6 pages
