A long-standing bankruptcy process that began in 2000 for a Pittsburgh company has finally come to an end.
After 16 years, Pittsburgh Corning Corp., has implemented its Modified Third Amended Plan of Reorganization. This took effect on Wednesday and means the company is successfully operating post-bankruptcy.
In a press release sent out by the company, Pittsburgh Corning Corp. Chairman and Chief Executive Officer James R. Kane stated “During Chapter 11, Pittsburgh Corning operated with two major objectives. For the first five years, when emergence seemed to be a few years in the offing, the company focused on protecting and preserving the assets, which would become part of the Asbestos Trust. When it became apparent that Pittsburgh Corning’s time in bankruptcy was going to be extended, our focus expanded to include strategic actions designed to reinvent our business to better serve customers worldwide and create a platform for sustained profitable growth for our future shareholders.
“(Wednesday), Pittsburgh Corning has achieved both goals. After 16 years of operating under Chapter 11, the Asbestos Personal Injury Settlement Trust can begin helping people and families. The company has performed well and is eager to move past Chapter 11 and toward a promising future.”
The Pittsburgh Corning Asbestos Personal Injury Settlement Trust will be one of the largest such trusts in the country. Assets for the trust are expected to be in excess of $3.5 billion and will resolve all asbestos personal injury claims related to Pittsburgh Corning. A website remains active that allows claimants and creditors to search for information on the progress of various claims.
Pittsburgh Corning filed for Chapter 11 bankruptcy in 2000, following liability for asbestos contained in pipe insulation the corporation manufactured from 1964 to 1972. The asbestos product was called Unibestos and was acquired from Union Asbestos and Rubber Co. Therefore, Pittsburgh Corning was named as a defendant in numerous lawsuits, defending and resolving more than 200,000 claims. An additional 235,000 pending claims were put on hold by the Chapter 11 protection the company sought to avoid exhausting all its available resources. The Modified Third Amended Plan of Reorganization was originally confirmed in 2013, affirmed by the U.S. District Court of Pennsylvania in late 2014 and saw the resolution of all appeals in January of this year. This allowed the plan to move forward.
As part of the ruling in January, Corning Inc., the partner in the Pittsburgh Corning Corp. joint venture, will make multi-year payments that will total $290 million. Corning Inc. will also be required to give up all interest in Pittsburgh Corning Corp., a venture formed in 1937.
A lot of changes have been made by Pittsburgh Corning during the time the Chapter 11 bankruptcy protection was in place. In the company’s release, the chairman and CEO noted as much.
“Pittsburgh Corning customers, employees, shareholders, suppliers and business partners have been instrumental in keeping the company stable, competitive and growing during the past 16 years,” said Kane. “We’re grateful for all of our stakeholders, whose unfaltering support has allowed Pittsburgh Corning to become a world leader in the production of high performance, sustainable, glass-based building materials that conserve energy, protect the environment and enhance safety for millions of people around the world.”
Pittsburgh Corning has implemented various initiatives to help provide better services to customers, improved safety and reduce cost and delivery time. The company has clients on three continents and has focused on producing environmentally advanced insulation and systems that utilize cellular glass. Meanwhile, glass block products are produced at the company’s Port Allegany plant.
