O-I Glass, Inc. (“O-I Glass” or “O-I”) today announced that its
wholly owned subsidiary, Paddock Enterprises, LLC (“Paddock”), has
reached an agreement in principle for a consensual plan of
reorganization under section 524(g) of the Bankruptcy Code.
Paddock, the Official Committee of Asbestos Personal Injury
Claimants (the “ACC”), and the legal representative for the future
asbestos personal injury claimants (the “FCR”) all agreed to accept
the terms of a mediator’s proposal regarding a potential consensual
plan of reorganization for Paddock. O-I Glass supports the
agreement among Paddock, the ACC and the FCR that follows a
successful court-approved mediation process conducted by Kenneth
Feinberg and the Honorable Layn R. Phillips in connection with
Paddock’s ongoing Chapter 11 case.
“From the beginning of the Chapter 11 process,
we have been committed to supporting a resolution of Paddock’s
legacy asbestos liabilities in a manner that ensures claimants are
treated fairly while providing finality and certainty for O-I Glass
and Paddock. This agreement is a positive and significant step
toward achieving those objectives. O-I Glass and Paddock look
forward to working cooperatively with the ACC and FCR to implement
the terms of the agreement. We believe this is the best path to not
only equitably address Paddock’s legacy liabilities but also move
expeditiously toward emergence,” said Andres Lopez, CEO of O-I
Glass.
Under the terms of the accepted proposal, the
total consideration to fund a section 524(g) trust on the effective
date of a confirmed plan of reorganization would be $610 million.
The agreement is subject to definitive documentation and
satisfaction of certain conditions including, but not limited to,
court approval of a plan of reorganization for Paddock that will
channel all current and future asbestos personal injury claims
against Paddock into a trust created under 11 U.S.C. § 524(g)
and establish an injunction protecting Paddock, O-I Glass, and
their affiliates from assertions of current and future liability
from such channeled claims.
Paddock is represented in the Chapter 11 case by Latham &
Watkins LLP and Alvarez & Marsal, and O-I Glass is represented
by Morris Nichols Arsht & Tunnell LLP.
Additional information about the Chapter 11 case can be found
at: https://cases.primeclerk.com/Paddock
O-I Glass news releases are available on the O-I Glass website
at www.o-i.com.
About O-I Glass At O-I
Glass, Inc. (NYSE: OI), we love glass and we’re proud to be one of
the leading producers of glass bottles and jars around the globe.
Glass is not only beautiful, it’s also pure and completely
recyclable, making it the most sustainable rigid packaging
material. Headquartered in Perrysburg, Ohio (USA), O-I is the
preferred partner for many of the world’s leading food and beverage
brands. We innovate in line with customers’ needs to create iconic
packaging that builds brands around the world. Led by our diverse
team of more than 25,000 people across 72 plants in
20 countries, O-I achieved revenues of $6.1 billion
in 2020.
Learn more about
us: o-i.com / Facebook / Twitter / Instagram / LinkedIn
Forward-Looking Statements
This press release contains “forward-looking” statements related
to O-I Glass and Paddock within the meaning of Section 21E of the
Securities Exchange Act of 1934, as amended, and Section 27A of the
Securities Act of 1933, as amended. These forward-looking
statements relate to the proposed plan of reorganization, the
outcome of Paddock’s Chapter 11 bankruptcy proceeding and the
related impact on O-I Glass’ and Paddock’s business, results of
operations and financial condition. Forward-looking statements
reflect O-I Glass’ and Paddock’s current expectations and
projections about future events at the time and involve uncertainty
and risk. The words “believe,” “will,” “could,” “would,” “plan,”
“potential,” and the negatives of these words and other similar
expressions generally identify forward-looking statements.
It is possible that actual results may differ from expectations
due to a variety of factors including, but not limited to, the
following: (1) the risk that the proposed plan of reorganization
may not be approved by the bankruptcy court or that other
conditions necessary to implement the agreement in principle may
not be satisfied, (2) the actions and decisions of participants in
the bankruptcy proceeding, and the actions and decisions of third
parties, including regulators, that may have an interest in the
bankruptcy proceedings, (3) the terms and conditions of any
reorganization plan that may ultimately be approved by the
bankruptcy court, (4) delays in the confirmation or consummation of
a plan of reorganization due to factors beyond O-I Glass’ and
Paddock’s control, (5) risks with respect to the receipt of the
consents necessary to effect the reorganization, (6) risks inherent
in, and potentially adverse developments related to, the bankruptcy
proceeding, that could adversely affect O-I Glass and O-I Glass’
liquidity or results of operations, (7) the impact of the COVID-19
pandemic and the various governmental, industry and consumer
actions related thereto, (8) O-I Glass’ ability to obtain the
benefits it anticipates from the corporate modernization, (9) O-I
Glass’ ability to manage its cost structure, including its success
in implementing restructuring or other plans aimed at improving O-I
Glass’ operating efficiency and working capital management,
achieving cost savings, and remaining well-positioned to address
Paddock’s legacy liabilities, (10) O-I Glass’ ability to acquire or
divest businesses, acquire and expand plants, integrate operations
of acquired businesses and achieve expected benefits from
acquisitions, divestitures or expansions, (11) O-I Glass’ ability
to achieve its strategic plan, (12) O-I Glass’ ability to improve
its glass melting technology, known as the MAGMA program, (13)
foreign currency fluctuations relative to the U.S. dollar, (14)
changes in capital availability or cost, including interest rate
fluctuations and the ability of O-I Glass to refinance debt on
favorable terms, (15) the general political, economic and
competitive conditions in markets and countries where O-I Glass has
operations, including uncertainties related to Brexit, economic and
social conditions, disruptions in the supply chain, competitive
pricing pressures, inflation or deflation, changes in tax rates and
laws, natural disasters, and weather, (16) O-I Glass’ ability to
generate sufficient future cash flows to ensure O-I Glass’ goodwill
is not impaired, (17) consumer preferences for alternative forms of
packaging, (18) cost and availability of raw materials, labor,
energy and transportation, (19) consolidation among competitors and
customers, (20) unanticipated expenditures with respect to data
privacy, environmental, safety and health laws, (21) unanticipated
operational disruptions, including higher capital spending, (22)
O-I Glass’ ability to further develop its sales, marketing and
product development capabilities, (23) the failure of O-I Glass’
joint venture partners to meet their obligations or commit
additional capital to the joint venture, (24) the ability of O-I
Glass and the third parties on which it relies for information
technology system support to prevent and detect security breaches
related to cybersecurity and data privacy, (25) changes in U.S.
trade policies, and the other risk factors discussed in O-I Glass’
Annual Report on Form 10-K for the year ended December 31, 2020 and
any subsequently filed Annual Report on Form 10-K, Quarterly
Reports on Form 10-Q or O-I Glass’ other filings with the
Securities and Exchange Commission.
- O-I Glass Announces Agreement of Potential Plan of
Reorganization for Paddock Subsidiary
For more information, contact:
Chris Manuel
Vice President of Investor Relations
567-336-2600
Chris.Manuel@o-i.com
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