Owens Corning's bank debt climbed to 109 1/4-110 1/4 from 107-109 last week after the company moved a step closer to the resolution of its protracted asbestos litigation. The jump followed a ruling by Judge John Fullam to set at $7 billion the amount of claims against Owens Corning caused by asbestos exposure.
The company's bank debt settled in the 107-109 range in February, when it jumped 16 points to 107 1/2-108 1/2. This occurred after oral arguments in the appeal against a ruling on substantive consolidation were presented in front of a three-judge panel in Philadelphia (LMW, 2/14). Last October, the court controversially ruled that Owens Corning's assets and debt would be consolidated under one entity affecting $1.6 billion of bank debt. An Owens Corning spokesman did not return calls.