Owens Corning's bank debt held its ground last week despite indications that asbestos legislation would not be passed in its current form. Traders said the bank debt was quoted in the 66-68 range, similar to where the levels stood two weeks ago, but added the reason for the propped levels was confidential. A company spokesman could not comment on the bank debt, but noted that Owens Corning has a hearing on Oct. 27 to discuss the voting procedures for its plan of reorganization.
With regard to the asbestos legislation, the AFL-CIO recently issued a statement saying it is "deeply concerned" with the funding for asbestos claimants reached under a new agreement between asbestos-laden companies and their insurers. The agreement provides for an upsized $114 billion fund, which the AFL-CIO deemed as "grossly inadequate to provide fair compensation for victims."