Bankruptcy court approves Pittsburgh Corning plan

Associated Press

PITTSBURGH (AP) -- PPG Industries Inc. said Tuesday a federal bankruptcy court has approved a reorganization plan for its joint venture with Corning Inc. that would resolve asbestos injury claims. PPG would give up its stake in Pittsburgh Corning and pay $825 million over 10 years.

Approval of the plan moves glass maker Pittsburgh Corning close to emerging from bankruptcy after 13 years. Pittsburgh Corning, which manufactured insulation containing asbestos, filed for bankruptcy protection from creditors in April 2000 as personal-injury litigation mounted against it. Hundreds of thousands of claims were filed. Previous proposals submitted by Pittsburgh Corning had been rejected by the court.

Corning and PPG, which makes paints and coatings, each own half of Pittsburgh Corning. Under the approved plan, PPG will give up its stake and pay about $825 million over 10 years into a trust for settling asbestos claims. The trust will total around $3.5 billion.

In addition, PPG's insurance companies will pay about $1.7 billion into the trust over 14 years. Corning will contribute $671 million.

Shares of Pittsburgh-based PPG rose 50 cents to end at $157.33. Shares of Corning, based in Corning, N.Y., increased 10 cents to close at $15.76.