O-I Glass unit Paddock receives confirmation of Chapter 11 plan

By Sarah Lizee

Olympia, Wash., May 16 – Paddock Enterprises, LLC’s Chapter 11 plan of reorganization was confirmed Monday by the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the plan will result in a permanent resolution of all current and future asbestos personal injury claims.

The plan is jointly proposed by parent company O-I Glass, the official committee of asbestos personal injury claimants, Paddock, and the legal representative for future asbestos personal injury claimants.

The plan’s centerpiece is a trust established under section 524(g) of the bankruptcy code that will process and pay asbestos claims pursuant to asbestos trust distribution procedures.

In exchange for funding the asbestos trust, Paddock and O I Glass, as well as some additional parties, will be protected by an injunction that will prohibit assertion of asbestos claims against the protected parties and will channel all such asbestos claims to the asbestos trust.

The asbestos trust will be funded with $610 million on the effective date of the plan.

The plan has been formulated in extensive informal negotiations and over a month of formal mediation proceedings among the plan proponents.

According to the disclosure statement, other priority claims and secured claims will be paid in full. General unsecured claims, environmental claims or causes of action, intercompany claims and Paddock equity interests will be reinstated.

Paddock is represented in the Chapter 11 case by Latham & Watkins LLP and Richards, Layton & Finger, PA, and O-I Glass is represented by Morris Nichols Arsht & Tunnell LLP.

Paddock is a subsidiary of Perrysburg, Ohio-based bottle and jar manufacturer O-I Glass. Paddock filed bankruptcy on Jan. 6, 2020 under Chapter 11 case number 20-10028.

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