OCF and Fibreboard $5.1 Billion Asbestos Settlement Trust Approved, Takes Effect October 30, 2006.

OCF's record $5.1 billion dollar asbestos personal injury trust fund has been approved. The Trust also includes the assets of Fibreboard Corporation. The follow is a breakdown of the agreement:

  • The effective date of the Trust Plan is October 30, 2006.

  • Claims settled administratively or by a jury verdict, but not paid prior to the Chapter 11 Filing will be paid first. OCF filed for Chapter 11 protection on October 5, 2000.

  • The Payment Percentage from both OCF and Fibreboard, has been set at 65% for Category A claims, those involving severe asbestosis and malignancies. "Combined" means the total settlements from both OCF and Fibreboard.

The combined maximum value for mesothelioma is $1,100,000.00 @ 65% = $715,000.00.

The combined average value for mesothelioma is $450,000.00 @ 65% = $292,500.00.

The combined scheduled value for mesothelioma is $350,000.00 @ 65% = $227,500.00.

  • Owens-Corning Payment Percentage has been set at 40% (see below). This means that the Trust will only pay 40% of the determined settlement value. The maximum, average and scheduled values above therefore will be adjusted downward.

  • Fibreboard Payment Percentage has been set at 25% (see below). This means that the Trust will only pay 25% of the determined settlement value. The maximum, average and scheduled values above therefore will be adjusted downward.

  • Claimant must show employment in an industry in which claimant was exposed for at least 5 years; must produce affidavit of exposure, must show exposure to OCF/Fibreboard asbestos products prior to DECEMBER 31, 1982. (see below).

  • Certain claimants may qualify for EXIGENT HARDSHIP claims, if claimant can show extraordinary financial or other hardship (eg., minor dependents, substantial lost wage claim, crushing medical bills). (see criteria below).

BRIEF SUMMARIZATION

OWENS-CORNING/FIBREBOARD ASBESTOS PERSONAL INJURY TRUST

· PLAN SUMMARY:

1. OWENS-CORNING SUB-ACCOUNT

SCHEDULED DISEASE

SCHEDULED VALUE

AVERAGE VALUE

MAXIMUM VALUE

Mesothelioma (Level VIII)

$ 215,000

$ 270,000

$ 650,000

Lung Cancer I (Level VII)

$ 40,000

$ 50,000

$ 150,000

Lung Cancer II (Level VI)

NONE

$ 20,000

$ 50,000

Other Cancer (Level V)

$ 22,000

$ 25,000

$ 60,000

Severe Asbestosis (Level IV)

$ 42,000

$ 50,000

$ 150,000


2. FIBREBOARD SUB-ACCOUNT

.

SCHEDULED DISEASE

SCHEDULED VALUE

AVERAGE VALUE

MAXIMUM VALUE

Mesothelioma (Level VIII)

$ 135,000

$ 180,000

$ 450,000

Lung Cancer I (Level VII)

$ 270,000

$ 35,000

$ 90,000

Lung Cancer II (Level VI)

NONE

$ 12,000

$ 30,000

Other Cancer (Level V)

$ 12,000

$ 15,000

$ 36,000

Severe Asbestosis (Level IV)

$ 29,000

$ 30,000.

$ 90,000


3. PERCENTAGE PAYMENT:

40% -

Owens-Corning - Subject to change to assure that the PI Trust will be in a position to continue current and future claims.

25% -

Fibreboard - Subject to change to assure that the PI Trust will be in a position to continue current and future claims.


4. PAYMENT SEQUENCE

A.

FIFO - (first in first out) has been established for each of the two PI TRUST Sub-Accounts.

B.

Pre-Petition, will be paid first - binding settlement agreement, the unpaid portion of the amount awarded by the jury verdict or non-final judgment, or the unpaid portion of the final judgment, plus interest and shall not include any punitive or exemplary damages; and will be subject to the Maximum Annual Payment and Payment Percentages.

C.

Claims that were not filed (i) against OC or Fibreboard in the tort system or actually submitted to OC or Fibreboard pursuant to an administrative settlement agreement prior to the Petition Date, or (ii) against another asbestos defendant in the tort system prior to the Plan Filing Date, shall not be processed until after the Initial Claims Filing Date.


5. OWENS-CORNING SUB-ACCOUNT and FIBREBOARD SUB-ACCOUNT MEDICAL CRITERIA

General - all diagnoses of a Disease Level shall be accompanied by (i) statement from physician providing the diagnosis that at least 10 years have elapsed between the date of first exposure (ii) history of claimant's exposure sufficient to establish a 10 years latency period

A.

Disease Levels V - VIII - all diagnoses of asbestos-related malignancy shall be base on (i) physical examination by the physician providing the diagnosis; (ii) diagnosis of the malignant disease by a board-certified pathologist.

1.

Mesothelioma VIII - diagnosis of mesothelioma;

2.

Lung Cancer 1, VII - diagnosis of a primary lung cancer plus underlying evidence Bilateral Asbestos-Related Nonmalignant Disease;

3.

Lung Cancer 2, VI - diagnosis of a primary lung cancer and supporting medical documentation establishing asbestos exposure as a contributing factor in causing the lung cancer in question (Lung Cancer 2 claims are those that do not meet the stringent medical and exposure requirements of Lung Cancer 1 and Mesothelioma);

4.

Other Cancer V - diagnosis of a primary colorectal, laryngeal, esophageal, pharyngeal, or stomach cancer, plus evidence of an underlying Bilateral Asbestos-Related Nonmalignant Disease and supporting medical documentation establishing asbestos exposure as a contributing factor in causing the cancer in question.

B.

Credibility of Medical Evidence - that being consistent with medical standards to include submission of X-rays, CT scan, pulmonary function tests, laboratory tests, tissue samples, results of medical examination or reviews of other medical evidence.


6. OWENS-CORNING SUB-ACCOUNT and FIBREBOARD SUB-ACCOUNT EXPOSURE CRITERIA:

A.

General - to qualify for any Disease Level, claimant must demonstrate a minimum exposure to an asbestos-containing product manufactured or distributed by OC or FIBREBOARD Claims based on conspiracy theories that involve no exposure to an asbestos-containing product produced by OC or FIB are not compensable.

B.

Significant Occupational Exposure - cumulative employment period of at least five (5) years with a minimum two (2) years prior to December 31, 1982 in an industry in which the claimant:

1.

Handled raw asbestos fibers on a regular basis;

2.

Fabricated asbestos-containing products so that the claimant would have had contact with raw asbestos fibers on a regular basis;

3.

Altered, repaired or otherwise worked with an asbestos-containing product such that the claimant was exposed on a regular bases to asbestos fibers;

4.

Claimant was employed in a business where he was in close proximity to workers engaged in the activities described in activities 1,2,& 3.

C.

OC or FIBREBOARD CREDIBLE EXPOSURE

1.

Demonstrate Meaningful and Credible Evidence of Exposure prior to December 31, 1982, to asbestos or asbestos-containing products supplied, specified, manufactured, installed, maintained, or repaired by either OC or FIBREBOARD, and/or any entity including an OC or FIBREBOARD contracting unit, for which OC or FIBREBOARD has legal liability.

2.

Establishing Evidence -

  • By affidavit or sworn statement of the claimant;

  • By and affidavit or sworn statement of a co-worker or;

  • The affidavit or sworn statement of a family member in the case of a deceased claimant (providing the PI Trust finds such evidence reasonably reliable);

  • Invoices;

  • Employment;

  • Construction or similar records;

  • Or by other credible evidence

3.

Altered, repaired or otherwise worked with an asbestos-containing product such that the claimant was exposed on a regular bases to asbestos fibers;

4.

Claimant was employed in a business where he was in close proximity to workers engaged in the activities described in activities 1,2,& 3.


D.

SCHEDULED DISEASE EXPOSURE REQUIREMENTS

1.

Mesothelioma (VIII)

  • Credible evidence of OC or Fibreboard exposure.

2.

Lung Cancer 1 (VII)

  • Six months OC or Fibreboard Exposure prior to December 31, 1982;

  • Significant Occupational Exposure to asbestos.

3.

Lung Cancer 2 (VI)

  • Six months OC or Fibreboard Exposure prior to December 31, 1982;

  • All claims in this Disease Level will be individually evaluated.

4.

Other Cancer (V)

  • Six months OC or Fibreboard Exposure prior to December 31, 1982;

  • Significant Occupational Exposure to asbestos.

7. EXIGENT HARDSHIP CLAIM

A.

To qualify for an Exigent Hardship Claim the Claimant must first meet the Medical and Exposure Criteria for Disease Level IV (severe asbestosis) or an asbestos-related malignancy, Disease Levels V - VIII.

B.

Claimant needs financial assistance on an immediate basis based on claimant's expenses.

C.

Shall be subject to the Maximum Available Payment.

D.

Will be placed before all other claims but after the Pre-Petition Liquidated Claims in the FIFO Payment Queue


For questions, please call 800 831 9399.

*** POSTED OCTOBER 4, 2006 ***