An Ohio-based company created an asbestos trust fund for its subsidiary company. The bankruptcy trust will include $610 million in initial funding.
O-I Glass owns Paddock Enterprises, which faces a slew of asbestos exposure and disease claims. O-L Glass announced Paddock would reorganize assets under Chapter 11 bankruptcy laws. The agreement is subject to court approval.
“From the beginning of the Chapter 11 process, we have been committed to supporting a resolution of Paddock’s legacy asbestos liabilities in a manner that ensures claimants are treated fairly while providing finality and certainty for O-I Glass and Paddock,” said Andres Lopez, the CEO of O-I Glass.
O-I Glass and Asbestos Exposure
O-I Glass is one of the top producers of glass bottles, jars and other products. The headquarters are in Perrysburg, Ohio, and the company partners with many food and beverage brands. O-I Glass has more than 25,000 employees at 78 different locations across 20 countries. The company reported revenue of $6.1 billion in 2020.
Paddock started the Chapter 11 bankruptcy process in January of 2020, as part of a reorganization to avoid asbestos lawsuits. O-I Glass isolated Paddock to receive all asbestos liability from past exposures and dangerous products. This type of maneuvering is common for companies to avoid multi-million-dollar asbestos lawsuits.
In the 1940s and 1950s, then called Owens-Illinois Inc., the company produced an asbestos insulation product branded as Kaylo. The asbestos-containing material was primarily used as pipe covering and block insulation.
Owens-Illinois stopped production of Kaylo in 1958. Since then, and even through renaming to O-I Glass, the parent company has faced approximately 400,000 asbestos legal claims. This figure comes from the Wall Street Journal, which also reported an estimated $5 billion in legal expenses from asbestos claims.
If you were exposed to Kaylo or any asbestos products associated with Owens-Illinois, please consider filing a trust fund claim. This action can get you and your family compensated quickly. Email our legal expert, Carl Jewett, at firstname.lastname@example.org.
Sources & Author
- O-I Glass Announces Agreement of Potential Plan of Reorganization for Paddock Subsidiary. O-I Glass. Retrieved from: https://www.o-i.com/news/o-i-glass-announces-agreement-of-potential-plan-of-reorganization-for-paddock-subsidiary/. Accessed: 05/04/2021.
- Paddock Enterprises, LLC, an O-I Glass, Inc. Affiliate, Seeks a Final and Equitable Resolution of its Legacy Asbestos-Related Claims. O-I Glass. Retrieved from: https://www.o-i.com/news/paddock-enterprises-llc-an-o-i-glass-inc-affiliate-seeks-a-final-and-equitable-resolution-of-its-legacy-asbestos-related-claims/. Accessed: 05/04/2021.
- Asbestos Costs Drive Owens-Illinois Affiliate to Bankruptcy. Wall Street Journal. Retrieved from: https://www.wsj.com/articles/asbestos-costs-drive-owens-illinois-affiliate-to-bankruptcy-11578316195. Accessed: 05/04/2021.
- O-I Glass subsidiary files for bankruptcy amid asbestos lawsuits. Toledo Blade. Retrieved from: https://www.toledoblade.com/business/2020/01/07/O-I-Glass-subsidiary-files-for-bankruptcy-amid-asbestos-lawsuits/stories/20200107138. Accessed: 05/04/2021.
Sources & Author