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Why was Owens Cornings Chapter 11 filing necessary?

April 26, 2017chapter 11 corning filing necessary Owens

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Why was Owens Cornings Chapter 11 filing necessary?

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Unlike most Chapter 11 cases, Owens Corning has a strong cash flow. However, due to ongoing asbestos payments, its obligations have increased to levels not sustainable over time. In addition, as a result of economic conditions, our cash flow has weakened. By filing for Chapter 11, we will have an opportunity to use the court-supervised reorganization process to achieve a binding, legal resolution to the asbestos situation. By doing so, we can finally put this difficult issue behind us and move forward.