Court OKs Pitt Corning’s reorg plan / By Martha Knight

The U.S. District Court for the Western District of Pennsylvania has confirmed Pittsburgh Corning Corporation’s most recently proposed plan of reorganization, as of October 1.

Court acceptance of the “modified third amended plan of reorganization” brings PCC closer to emerging from Chapter 11 bankruptcy, one of the longest on record. The company sought bankruptcy relief in April of 2000.

Among other provisions, the plan of reorganization establishes a trust valued at more than $3.5 billion to assume all asbestos-related liabilities and cover all asbestos-related personal injury claims.

The trust will be funded by Pittsburgh Corning, and by its shareholders, PPG Industries and Corning Incorporated, and also by participating insurance carriers.

James R. Kane, Pittsburgh Corning’s chairman and CEO, called the confirmation “another significant milestone…leading us one step closer to the consummation of our Chapter 11 process.”

Kane added, “We thank our employees, customers, suppliers, shareholders and business partners for helping our community remain stable and competitive. Pittsburgh Corning has a strong foundation for continued growth, and we look forward to completing the next step toward emerging from bankruptcy.”

The bankruptcy can be traced to Pittsburgh Corning’s manufacturing and marketing of Unibestos, an asbestos-containing line of insulation the company had acquired from Union Asbestos and Rubber Company. PC  acquired a Unibestos facility in Tyler, Texas, and also built Plant 8 near its existing facilities in Port Allegany, specifically to produce Unibestos.

PC averaged less than $3 million in annual revenues from Unibestos production and sales, between 1964 and 1972. But the company became a defendant in asbestos-related lawsuits, including class actions, with 200,000 initial claims. By 2000 the company was facing an additional 235,000 claims. Defending and settling all claims would have exhausted company resources and still left some claims unresolved. Chapter 11 was the remedy.

Lenders and suppliers were among creditors when PC filed for Chapter 11 protection.

Pittsburgh Corning has sponsored the Port Allegany Asbestos Health Program for years, providing diagnostic care and other supportive services to former employees and their families who had been exposed to asbestos in connection with Unibestos production.

Pittsburgh Corning is wholly owned by its parent companies, which founded it in 1937. Its first manufacturing facility went into production in Port Allegany in 1938. The company also has produced Foamglas there, a cellular glass insulation material still in wide use, but no longer produced in Port Allegany. The local Foamglas operation was awarded the coveted E award for its war effort contributions, in World War II, when the flotation properties of the light, rigid material assisted with landings of troops and materiel in the Pacific Theater.

Although dishware was produced in Port Allegany in the early days, glass blocks have been a major product. At one time Port Allegany was the glass block capital of the world. The local plant still produces glass blocks, and is emphasizing prefabrication of glass block panels and assemblies, along with production of its various styles of blocks in several sizes and shapes.

Pittsburgh Corning Corporation and Pittsburgh Corning Europe are headquartered in Pittsburgh and in Tessenderlo, Belgium.