O-I Glass Subsidiary, Paddock Enterprises, LLC, Emerges from Chapter 11

O-I Glass, Inc. (“O-I Glass”) today announced that its wholly owned subsidiary, Paddock Enterprises, LLC (“Paddock”), has emerged from Chapter 11 protection, following affirmation by the U.S. District Court for the District of Delaware on June 22, 2022, of an order confirming Paddock’s Plan of Reorganization (the “Plan”). The Plan was previously confirmed by the U.S. Bankruptcy Court for the District of Delaware on May 26, 2022. Paddock emerges from Chapter 11 having achieved a final and fair resolution of its asbestos-related legacy liabilities under the Plan.

“Paddock’s Chapter 11 process has been completed in a manner that provides finality for the company and, importantly, fair and equitable resolution for claimants,” said Andres Lopez, CEO of O-I Glass. 

The approved Plan was jointly proposed by Paddock, the official representatives for Paddock’s asbestos claimants in the Chapter 11 proceeding—the Asbestos Claimants Committee and the Future Claimants’ Representative—and O-I Glass. The centerpiece of the Plan is a trust established under section 524(g) of the Bankruptcy Code (the “Asbestos Trust”) that processes and pays asbestos personal injury claims (“Asbestos Claims”) pursuant to Asbestos Trust Distribution Procedures. As of today, the Asbestos Trust has been fully funded, with cash and other consideration totaling $610 million.

In exchange for funding the Asbestos Trust, Paddock and its parent company, O-I Glass, as well as its current and former affiliates (collectively with certain additional parties, the “Protected Parties”), are protected by an injunction that prohibits assertion of Asbestos Claims against the Protected Parties and channels all such Asbestos Claims to the Asbestos Trust.
https://investors.o-i.com/news-releases/news-release-details/o-i-glass-subsidiary-paddock-enterprises-llc-emerges-chapter-11