Owens Corning Inc (OC)

[cyclicstyle]

Get em NOW!!!!
WILMINGTON, Del. (Dow Jones)--Owens Corning (OWENQ) said Wednesday that it reached a deal with its major creditors to rewrite its Chapter 11 plan and get out of bankruptcy.

Norman Pernick, attorney for the Toledo, Ohio, maker of building materials, announced the outlines of the broad-ranging pact at a court hearing in Pittsburgh.

Banks, bondholders and even official representatives of existing shareholders are on board with the deal, Pernick said.

Owens Corning will have to rewrite its plan to incorporate the deal, which includes a new equity commitment.


(MORE TO FOLLOW) Dow Jones Newswires

05-10-06 1142ET

Copyright (c) 2006 Dow Jones & Company, Inc.

DJ Owens Corning Reaches Deal On Consensual Ch 11 Plan -2-


Existing shareholders, who were supposed to receive nothing under the Chapter 11 scheme that Owens Corning filed last Dec. 31, will get warrants to buy up to 5% of the stock in the reorganized company, Pernick said.

The strike price on the shareholder warrants will be $45.25 a share, and shareholders will have up to seven years to decide if they want to exercise them.

Most of Owens Corning, however, will be in the hands of bondholders, trade creditors and asbestos creditors, under the revised plan outlined in court.

The company has been in bankruptcy since Oct. 5, 2000, and is aiming to get out by this Oct. 30, Pernick said.


(MORE TO FOLLOW) Dow Jones Newswires