O-I Glass, Inc. yesterday announced that its wholly owned subsidiary, Paddock Enterprises, LLC, has filed its chapter 11 reorganization plan and related disclosure statement with the U.S. Bankruptcy Court for the District of Delaware (the “Court”) as part of the chapter 11 case that Paddock initiated on January 6, 2020, according to a press release. The plan, once confirmed by the courts, will result in a permanent resolution of all current and future asbestos personal injury claims. The plan is jointly proposed by the plan proponents, which are O-I Glass, the official committee of asbestos personal injury claimants, Paddock, and the legal representative for future asbestos personal injury claimants. The plan’s centerpiece is a trust established under section 524(g) of the Bankruptcy Code that will process and pay asbestos claims pursuant to asbestos trust distribution procedures. In exchange for funding the asbestos trust, Paddock and its parent company, O I Glass, as well as certain additional parties, will be protected by an injunction that will prohibit assertion of asbestos claims against the Protected Parties and will channel all such asbestos claims to the asbestos trust.
