Owens Corning's bank debt continued to see-saw this week on pending asbestos legislation. Last Tuesday morning, the paper was quoted in the 71-73 range and then traded up to the 75-77 context. One dealer explained that later in the day the price of the loan had settled somewhat into the 74-76 range after investors believed the market had run up too high. Toward week's end, the market for Owens Corning bank debt slipped again into the 69-71 context after the Senate Judiciary Committee failed to reach an agreement on certain aspects of the bill. "This is some serious money here," said one dealer, explaining why the price for the loan was so volatile in the wake of the negotiations. Market players had anticipated that the Senate Judiciary Committee would have recommended the bill to the full Senate last Thursday.
Meanwhile, Owens Corning is still in the midst of completing a plan of reorganization. The company has recently completed a revised disclosure statement, which has been distributed to creditors. Creditor groups now have the opportunity to provide the company with informal feedback before another revised disclosure statement is filed with the court in early August. While the company is working on the plan of reorganization, it is keeping one eye on Washington should the legislation affect the restructuring, said a company spokesman. "The idea is to get out of bankruptcy as quickly as possible and as strong as possible," he said.