Paddock Enterprises, LLC Reorganization Plan Confirmed


  • Reorganization plan confirmed by US bankruptcy court
  • The plan received overwhelming support from Paddock asbestos claimants with over 99% voting in favor
  • Subsidiary OI Glass plans to exit Chapter 11 mid-2022

Today, Paddock Enterprises, LLC (“Paddock”), a wholly owned subsidiary of OI Glass, Inc. (“OI Glass”), announced that an order confirming its plan of reorganization (the “Plan”) was brought before the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”), paving the way for the implementation of the plan and the final stage of the Chapter 11 process.

“We are pleased to have reached this important milestone in resolving the legacy liabilities of Paddock in a fair and equitable manner, and ensuring the finality of the business in the future,” said Andres Lopez, CEO of OI. Glass. “The broad support for the Plan among applicants is indicative of the positive outcome it offers to all parties. We look forward to implementing the final stages of the Chapter 11 process following this confirmation by the bankruptcy court. »

The approved plan was proposed jointly by Paddock, the Asbestos Claimants Committee (“ACC”), the Future Claimants Representative (“FCR”) and OI Glass and received overwhelming support from Paddock’s asbestos claimants, with more than 99% of the votes. in favour. The centerpiece of the Plan is a trust established under Section 524(g) of the Bankruptcy Code (the “Asbestos Trust”) which will process and pay asbestos-related claims pursuant to the distribution procedures of the Asbestos Trust (“TDP”). In return for funding from the Asbestos Trust, Paddock and its parent company, OI Glass, along with certain additional parties (collectively, the “Protected Parties”), will be protected by an injunction that will restrain the assertion of asbestos claims against protected parts. and forward all such Asbestos Complaints to the Asbestos Trust. As of the Effective Date, the Asbestos Trust will be funded with cash and other consideration totaling $610 million.

Paddock will then petition the United States District Court for the District of Delaware (the “District Court”) to confirm the bankruptcy court’s order. Pending this District Court approval, Paddock expects to exit Chapter 11 in mid-2022, which will result in a permanent resolution of Paddock’s legacy asbestos liabilities.

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

OI Glass press releases are available on the OI Glass website


About OI Glass

At OI Glass, Inc. (NYSE: OI), we love glass and are proud to be one of the leading producers of glass bottles and jars in the world. Glass isn’t just beautiful, it’s also pure and fully recyclable, making it the most sustainable rigid packaging material. Based in Perrysburg, Ohio (USA), OI is the preferred partner of many of the world’s leading food and beverage brands. We innovate based on customer needs to create iconic packaging that builds brands around the world. Led by our diverse team of over 24,000 people across 70plants in 19countries, OI achieved net sales of $6.4 billion in 2021. Learn more about company regularly publishes important information on its website –

Forward-looking statements

This press release contains “forward-looking” statements relating to OI Glass and Paddock within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as fine. These forward-looking statements relate to the plan, the outcome of Paddock’s Chapter 11 bankruptcy proceedings and the related impact on the business, results of operations and financial condition of OI Glass and Paddock. Forward-looking statements reflect OI Glass and Paddock’s current expectations and projections regarding future events at that time and involve risks and uncertainties. The words “believe”, “will”, “could”, “would”, “plan”, “potential” and the negatives of these words and other similar expressions generally identify forward-looking statements.

It is possible that actual results will differ from expectations due to a variety of factors, including, but not limited to, the following: (1) the risk that the required provisions of the plan will not be approved in whole or in part by the district court or that other conditions necessary to implement the tentative agreement may not be met, (2) the actions and decisions of the participants in the bankruptcy proceeding, and the actions and decisions of third parties, including regulators, who may have an interest in the bankruptcy proceeding, (3) delays in completing a plan of reorganization, including the Plan, due to factors beyond the control of OI Glass and Paddock, (4) risks associated with receiving the necessary consents to effect the reorganization, (5) inherent risks and potentially adverse developments associated with the bankruptcy proceedings, which could adversely affect the liquidity identity or results of operations of OI Glass and OI Glass, (6) the impact of the COVID-19 c pandemic and the various governmental, industry and consumer actions related thereto, ( 7) OI Glass’s ability to achieve the benefits it anticipates from modernizing the business, (8) OI Glass’s ability to manage its cost structure, including its success in implementing restructuring or other plans to improve OI Glass’s operating efficiency and working capital management, achieve cost savings and remain well positioned to meet liabilities inherited from Paddock, (9) the ability to OI Glass to acquire or divest businesses, acquire and expand plants, integrate businesses of acquired businesses and obtain expected benefits from acquisitions, divestitures or expansions, (10) OI Glass’s ability to achieve its strategic plan, (11) OI Glass’s ability to improve its melting glass, known as the MAGMA program, and to implement it within the expected timeframe, (12) fluctuations in foreign currencies against the U.S. dollar, (13) changes in the availability or cost of capital , including interest rate flu cations and OI Glass’s ability to refinance debt on favorable terms, (14) general political, economic and competitive conditions in the markets and countries where OI Glass does business , including uncertainties related to economic and social conditions, supply chain disruptions, competitive pricing pressures, inflation or deflation, changes in tax rates and laws, natural disasters and weather conditions, (15) OI Glass’s ability to generate sufficient future cash flows to ensure that OI Glass’s goodwill is not impaired, (16) consumer preferences rs for alternative forms of packaging, (17) cost and availability of raw materials, labor, energy and transport (including impacts related to the current conflict between Russia and Ukraine) , (18) consolidation between competitors and customers, (19) unanticipated expenses relating to data privacy, environmental, safety and health laws, (20) unanticipated operational disruptions, including increased expenses in capital, (21) the ability of OI Glass to o further develop its sales, marketing and product development capabilities, (22) the failure of OI Glass’ joint venture partners to meet their obligations or commit additional capital in the joint venture, (23) the ability of OI Glass and third parties it relies on for information technology system support to prevent and detect security breaches related to cybersecurity and confiden iality of data, (24) changes in U.S. trade policies, (25) risks related to recycling and recycled content laws and regulations, and (26) risks related to climate change and air emissions, including related laws or regulations and other risk factors discussed in OI Glass’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021 and other filings by OI Glass with the Securities and Exchange Commission.


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