- Plan of Reorganization confirmed by U.S. Bankruptcy
Court
- Plan received overwhelming support of Paddock’s asbestos
Claimants with more than 99 percent voting in favor
- The O-I Glass subsidiary expects to emerge from Chapter 11 in
mid-2022
Today, Paddock Enterprises, LLC
(“Paddock”), a wholly owned subsidiary of O-I Glass, Inc. (“O-I
Glass”), announced that an order confirming its Plan of
Reorganization (the “Plan”) was entered by the United States
Bankruptcy Court for the District of Delaware (the “Bankruptcy
Court”), paving way to the implementation of the Plan and the final
stage in the Chapter 11 process.
“We are pleased to have achieved this
significant milestone resolving Paddock’s legacy liabilities in a
manner that is fair and equitable, and provides finality for the
company moving forward,” said Andres Lopez, CEO of O-I Glass. “The
broad support for the Plan among Claimants is indicative of the
positive outcome it delivers to all parties. We look forward to
implementing the final steps in the Chapter 11 process following
this confirmation by the Bankruptcy Court.”
The approved Plan was jointly proposed
by Paddock, the Asbestos Claimants’ Committee (“ACC”), the Future
Claimants’ Representative (“FCR”), and O-I Glass and received the
overwhelming support of Paddock’s asbestos Claimants, with more
than 99% voting in favor. The centerpiece of the Plan is a trust
established under section 524(g) of the Bankruptcy Code (the
“Asbestos Trust”) that will process and pay Asbestos Claims
pursuant to Asbestos Trust Distribution Procedures (“TDP”). In
exchange for funding the Asbestos Trust, Paddock and its parent
company, O-I Glass, as well as certain additional parties
(collectively, the “Protected 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. As of the effective date, the Asbestos Trust
will be funded with cash and other consideration totaling $610
million.
Paddock next will seek the United
States District Court for the District of Delaware’s (the “District
Court”) affirmation of the Bankruptcy Court’s order. Pending
this approval by the District Court, Paddock expects to emerge from
Chapter 11 in mid-2022, resulting in a permanent resolution to
Paddock’s legacy asbestos liabilities.
Paddock is represented in the Chapter
11 case by Latham & Watkins LLP and Richards, Layton &
Finger, PA, and O-I Glass is represented by Morris Nichols Arsht
& Tunnell LLP.
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 24,000
people across 70 plants in 19 countries, O-I achieved net sales of
$6.4 billion in 2021. Learn more about
us: o-i.com / Facebook / Twitter / Instagram / LinkedIn. The
company routinely posts important information on its website
– www.o-i.com/investors.
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 Plan, 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 requisite Plan
provisions may not be approved in whole or in part by the District
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 proceeding, (3) delays in the
consummation of a plan of reorganization, including the Plan, due
to factors beyond O-I Glass’ and Paddock’s control, (4) risks with
respect to the receipt of the consents necessary to effect the
reorganization, (5) 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, (6) the impact of the COVID-19 pandemic and the various
governmental, industry and consumer actions related thereto, (7)
O-I Glass’ ability to obtain the benefits it anticipates from the
corporate modernization, (8) 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, (9) 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,
(10) O-I Glass’ ability to achieve its strategic plan, (11) O-I
Glass’ ability to improve its glass melting technology, known as
the MAGMA program and implement it within the timeframe expected,
(12) foreign currency fluctuations relative to the U.S. dollar,
(13) changes in capital availability or cost, including interest
rate fluctuations and the ability of O-I Glass to refinance debt on
favorable terms, (14) the general political, economic and
competitive conditions in markets and countries where O-I Glass has
operations, including uncertainties related to 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, (15) O-I Glass’ ability to generate
sufficient future cash flows to ensure O-I Glass’ goodwill is not
impaired, (16) consumer preferences for alternative forms of
packaging, (17) cost and availability of raw materials, labor,
energy and transportation (including impacts related to the current
conflict between Russia and Ukraine), (18) consolidation among
competitors and customers, (19) unanticipated expenditures with
respect to data privacy, environmental, safety and health laws,
(20) unanticipated operational disruptions, including higher
capital spending, (21) O-I Glass’ ability to further develop its
sales, marketing and product development capabilities, (22) the
failure of O-I Glass’ joint venture partners to meet their
obligations or commit additional capital to the joint venture, (23)
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, (24)
changes in U.S. trade policies, (25) risks related to recycling and
recycled content laws and regulations, and (26) risks related to
climate-change and air emissions, including related laws or
regulations and the other risk factors discussed in O-I Glass’
Annual Report on Form 10-K for the year ended December 31, 2021 and
O-I Glass’ other filings with the Securities and Exchange
Commission.
- 2022 05 25 PRESS RELEASE Paddock Enterprises, LLC Plan of
Reorganization Confirmed by U.S. Court
Chris Manuel
Vice President, Investor Relations
chris.manuel@o-i.com
567-336-2600
James Woods
PR Lead
James.Woods@o-i.com
724-732-5748
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