Roughly $10-15 million of Owens Corning bank debt changed hands last week as levels slid from the high 50s into the low 50s. One trader noted that investors were still nervous about the asbestos issues facing the company. In its most recent 10-Q filing last Monday, the company stated that "any estimate of liabilities for pending and expected future asbestos claims is subject to considerable uncertainty because such liabilities are influenced by numerous variables that are inherently difficult to predict."
In addition to asbestos uncertainty, bank debt levels were dragged down by weaker financials. Owens Corning disclosed a net loss of $411 million for the first six months as a result of new accounting standards for dealing with goodwill. Calls to company officials were not returned by press time.