<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 21, 1995
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 5 pages
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Item 5. Other Events.
On December 21, 1995, Owens-Illinois, Inc. issued a press release
announcing settlements totaling $400 million in asbestos 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 December 21, 1995.
Page 2 of 5 pages
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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 (Lee A. Wesselmann)
----------------------
Lee A. Wesselmann
Senior Vice President and
Chief Financial Officer
(Principal Financial Officer)
Dated: December 21, 1995
Page 3 of 5 pages
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EXHIBIT INDEX
Exhibit
Number Exhibit Page
99 Owens-Illinois press release dated 5
December 21, 1995
Page 4 of 5 pages
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OWENS-ILLINOIS REACHES SETTLEMENTS TOTALING $400 MILLION IN ASBESTOS INSURANCE
LITIGATION
Toledo, Ohio, December 21, 1995 -- Owens-Illinois, Inc., (NYSE: OI) today
announced that it has reached settlements with certain reinsurance companies
participating as parties in the United Insurance case, resulting in the
confirmation of approximately $140 million of additional insurance coverage
related to asbestos claims against Owens-Illinois.
Owens-Illinois further announced that it has reached an agreement with Owens
Insurance Ltd. (OIL), settling the remaining insurance at issue in the case.
OIL is a wholly-owned subsidiary of Owens-Illinois and was the principal
insurer providing coverage for O-I's asbestos claims through reinsurance
policies issued by various insurers. The settlement agreement with OIL is a
necessary step toward obtaining reimbursement from those reinsurers which have
not already settled the reinsurance coverage claims against them.
The combination of these settlements, along with expected reimbursement of
lesser amounts from other third party sources, reflect additional insurance
coverage totaling approximately $400 million. Previously, Owens-Illinois had
received approximately $100 million from earlier settlements with other
reinsurers involved in the case.
The settlements announced today involve all of the remaining coverage issues
among all the parties in the United Insurance case. While certain reinsurers
may contest the OIL settlement, Owens-Illinois believes that ultimately it will
be enforced in accordance with its terms. Furthermore, the settlements have
been accepted by the Superior Court of New Jersey, which expressly endorsed the
OIL settlement as a fair and reasonable resolution of the protracted United
Insurance coverage dispute.
Owens-Illinois will use the settlement proceeds, when received, to reduce bank
debt incurred in paying claims.
Thomas L. Young, Owens-Illinois executive vice president and general counsel,
said, "With the agreements announced today, we have now resolved our coverage
dispute with the principal insurer and with all of the reinsurers that had been
parties to the United Insurance case. Although the settlement agreements will
result in some reduction in the value of the company's asbestos insurance
asset, the agreements that have been concluded to date affirm our previously
stated opinion that we would ultimately receive a substantial amount of
coverage as a result of this litigation."
Joseph H. Lemieux, Owens-Illinois chairman and chief executive officer, said,
"These settlements mark the beginning of a new chapter in the history of
Owens-Illinois. Throughout this dispute, we have maintained good operating
results and financial flexibility to implement our growth strategy. Now we
will receive additional and timely resources to support the continued growth of
our business and pursue new investment opportunities around the world."
CONTACT: Owens-Illinois, John Hoff, 419-247-1203
Page 5 of 5 pages
