USG BANKRUPTCY NEWS Issue Number 1 (1 of 3)
Bankruptcy Creditors' Service, Inc. 609-392-0900 FAX 609-392-0040
USG BANKRUPTCY NEWS is published by Bankruptcy Creditors'
Service, Inc., 24 Perdicaris Place, Trenton, New Jersey 08618,
On an ad hoc basis (generally every 10 to 20 days) as significant
activity occurs in the Debtors' cases. Each issue is prepared by
Peter A. Chapman, Editor. Subscription rate is US$45 per issue.
Reproduction and re-mailing of USG BANKRUPTCY NEWS is prohibited.
IN THIS ISSUE
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[00000] HOW TO ORDER A SUBSCRIPTION TO USG BANKRUPTCY NEWS
[00001] BACKGROUND & DESCRIPTION OF USG CORPORATION
[00002] CONSOLIDATED BALANCE SHEET AT MARCH 31, 2001
[00003] COMPANY'S PRESS RELEASE CONCERNING CHAPTER 11 FILING
[00004] USG DEBTORS' CHAPTER 11 DATABASE
[00005] LIST OF USG DEBTORS' 50 LARGEST UNSECURED CREDITORS
[00006] DEBTORS' MOTION FOR JOINT ADMINISTRATION OF PROCEEDINGS
[00007] DEBTORS' MOTION TO HONOR PREPETITION EMPLOYEE OBLIGATIONS
KEY DATE CALENDAR
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06/25/01 Voluntary Petition Date
07/10/01 Deadline for filing Schedules of Assets and Liabilities
07/10/01 Deadline for filing Statement of Financial Affairs
07/10/01 Deadline for filing Lists of Leases and Contracts
07/15/01 Deadline to provide Utilities with adequate assurance
08/24/01 Deadline to make decisions about lease dispositions
09/23/01 Deadline to removal actions pursuant to F.R.B.P. 9027
10/23/01 Expiration of Debtors' Exclusive Plan Proposal Period
12/22/01 Expiration of Debtors' Exclusive Solicitation Period
06/24/03 Deadline for Debtors' Commencement of Avoidance Actions
<None> Organizational Meeting with UST to form Committees
<None> Bar Date for filing Proofs of Claim
<None> First Meeting of Creditors pursuant to 11 USC Sec. 341
USG BANKRUPTCY NEWS is distributed to paying subscribers by
electronic mail. New issues are published on an ad hoc basis as
significant activity occurs (generally every 10 to 20 days) in
the Debtors' cases. The subscription rate is $45 per issue.
Newsletters are delivered via e-mail; invoices, transmitted
following publication of each newsletter issue, arrive by fax.
Distribution to multiple individuals at the same firm is provided
at no additional charge; folks outside of your firm should set-up
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canceled at any time without further obligation.
To continue receiving USG BANKRUPTCY NEWS, please complete the
form below and return it by fax or e-mail to:
Bankruptcy Creditors' Service, Inc.
24 Perdicaris Place
Trenton, NJ 08618
Telephone (609) 392-0900
Fax (609) 392-0040
E-mail: peter@bankrupt.com
We have published similar newsletters tracking billion-dollar
insolvency proceedings since 1990. Currently, we provide similar
coverage about the chapter 11 cases involving W.R. Grace & Co.,
Owens Corning, Armstrong World Industries, Pacific Gas and
Electric Company, Reliance Group Holdings & Reliance Financial,
The FINOVA Group, Inc., LTV, Wheeling-Pittsburgh, Safety-Kleen,
Fruit of the Loom, Pillowtex, Warnaco, Bridge Information
Services, Service Merchandise, Winstar, ICG Communications,
PSINet, Lernout & Hauspie & Dictaphone, Imperial Sugar, Vlasic
Foods, The Loewen Group International, Inc., Harnischfeger
Industries, Inc., Vencor, Inc., Sun Healthcare Group, Inc.,
Mariner Post-Acute & Mariner Health, Genesis Health & Multicare,
and Integrated Health Services.
[00001] BACKGROUND & DESCRIPTION OF USG CORPORATION
Through its subsidiaries, USG Corporation is a leading
manufacturer and distributor of building materials producing a
wide range of products for use in new residential, new
nonresidential and repair and remodel construction, as well as
products used in certain industrial processes.
USG's operations are organized into three operating segments:
(A) NORTH AMERICAN GYPSUM -- About 54% of Annual Revenues
Business -- North American Gypsum, which manufactures
and markets gypsum and related products in the United States,
Canada and Mexico, includes U.S. Gypsum in the United States, the
gypsum business of CGC Inc., in Canada, and USG Mexico
S.A. de C.V. in Mexico. U.S. Gypsum is the largest producer of
gypsum wallboard in the United States and accounted for nearly
one-third of total domestic gypsum wallboard sales in 2000. CGC
is the largest producer of gypsum wallboard in eastern Canada.
Products -- North American Gypsum's products are used
in a variety of building and industrial applications. Gypsum
panel products are used to finish the interior walls and ceilings
in residential, commercial and institutional construction.
These products provide aesthetic as well as sound-dampening and
fire-retarding value. The majority of these products are sold
under the SHEETROCK brand name. Also sold under the SHEETROCK
brand name is a line of joint compounds used for finishing
wallboard joints. The DUROCK line of cement board and
accessories provides fire-resistant and water-damage-resistant
assemblies for both interior and exterior construction. FIBEROCK
brand gypsum fiber panels include abuse-resistant wall panels and
floor underlayment. The Corporation produces a variety of
plaster products used to provide a custom finish for residential
and commercial interiors. Like SHEETROCK brand gypsum wallboard,
these products provide aesthetic, sound-dampening and fire-
retarding value. Plaster products are sold under the trade names
of RED TOP, IMPERIAL and DIAMOND. The Corporation also produces
gypsum-based products for agricultural and industrial customers
to use in a number of applications, including soil conditioning,
road repair, fireproofing and ceramics.
Manufacturing -- North American Gypsum's products are
manufactured at 44 plants located throughout the United States
and Canada and in central Mexico. Gypsum rock is mined or
quarried at 14 company-owned locations in North America. In
2000, these locations provided approximately 77% of the gypsum
used by USG's plants in North America. Certain plants purchase
synthetic gypsum or natural gypsum rock from various outside
sources. Outside purchases accounted for 23% of the gypsum used
in USG's plants. The Corporation's geologists estimate that its
recoverable rock reserves are sufficient for more than 30 years
of operation based on the Corporation's average annual production
of crude gypsum during the past five years. Proven reserves
contain approximately 282 million tons. Additional reserves of
approximately 154 million tons are found on four properties not
in operation. USG's total average annual production of crude
gypsum during the past five years was 10 million tons.
Paper Mills -- The Corporation owns and operates seven
paper mills located across the United States. Vertical
integration in paper ensures a continuous supply of high-quality
paper that is tailored to the specific needs of USG's wallboard
production processes.
Research -- The Corporation does research and
development at the USG Research and Technology Center in
Libertyville, Ill. The staff at this center provides specialized
technical services to the operating units and does product and
process research and development. The center is especially well-
equipped for carrying out fire, acoustical, structural and
environmental testing of products and building assemblies. The
center also has an analytical laboratory for chemical analysis
and characterization of materials. Development activities can
be taken to the pilot plant level before being transferred to a
full-size plant.
Marketing and Distribution -- Distribution is carried
out through L&W Supply Corporation, a wholly owned subsidiary of
USG, building materials dealers, home improvement centers and
other retailers, contractors and specialty wallboard
distributors. Sales of gypsum products are seasonal in the sense
that sales are generally greater from spring through the middle
of autumn than during the remaining part of the year. Based on
the Corporation's estimates using publicly available data,
internal surveys, and gypsum wallboard shipment data from the
Gypsum Association, management estimates that during 2000, about
45% of total industry volume demand for gypsum wallboard was
generated by new residential construction activity, 37% of volume
demand was generated by residential and nonresidential repair and
remodel activity, 13% of volume demand was generated by new
nonresidential construction activity and the remaining 5% of
volume demand was generated by other activities such as exports
and temporary construction.
Competition -- The Corporation competes in North
America as the largest of 11 producers of gypsum wallboard
products and in 2000 accounted for nearly one-third of total
gypsum wallboard sales in the United States. In 2000, U.S. Gypsum
shipped 9.3 billion square feet of wallboard, the highest level
in the Corporation's history, out of total U.S. industry
shipments (including imports) estimated at 29.3 billion square
feet, the second highest level on record. Principal competitors
in the United States are: National Gypsum Company, Georgia-
Pacific Corporation, James Hardie Gypsum, BPB Celotex, Temple-
Inland Forest Products Corporation, American Gypsum, Lafarge
Corporation and other smaller, regional competitors. Major
competitors in Canada include BPB Westroc, Georgia-Pacific
Corporation and Lafarge Corporation. In Mexico, the Corporation's
major competitor is Panel Rey.
(B) WORLDWIDE CEILINGS -- About 16% of Annual Revenues
Business -- Worldwide Ceilings, which manufactures and
markets interior systems products worldwide, includes USG
Interiors, Inc., the international interior systems business
managed as USG International and the ceilings business of CGC.
Worldwide Ceilings is a leading supplier of interior ceilings
products used primarily in commercial applications. In 2000,
Worldwide Ceilings was estimated to be the largest producer of
ceiling grid and the second largest producer of ceiling tile in
the world.
Products -- Worldwide Ceilings manufactures and markets
ceiling grid, ceiling tile, relocatable wall systems and, in
Europe and the Asia-Pacific region, access floor systems. USG's
integrated line of ceilings products provides qualities such as
sound absorption, fire retardation, and convenient access to the
space above the ceiling for electrical and mechanical systems,
air distribution and maintenance. USG Interiors' significant
trade names include the AURATONE and ACOUSTONE brands of ceiling
tile and the DX, FINELINE, CENTRICITEE, CURVATURA and DONN brands
of ceiling grid.
Manufacturing -- Worldwide Ceilings' products are
manufactured at 20 plants located in North America, Europe and
Asia-Pacific. These include 10 ceiling grid plants, 5 ceiling
tile plants, 2 plants that produce other interior products and 3
plants that produce or prepare raw materials for ceiling tile and
grid. Principal raw materials used in the production of Worldwide
Ceilings' products include mineral fiber, steel, perlite, starch
and high-pressure laminates. Certain of these raw materials are
produced internally, while others are obtained from various
outside suppliers. Shortages of raw materials used in this
segment are not expected.
Research -- USG Interiors' primary research and
development are carried out at the Corporation's research and
development center in Libertyville, Ill., and at its
Solutions Center(SM) in Chicago, Ill. An additional metal forming
research and development facility in Avon, Ohio, provides product
design, engineering and testing services in addition to
manufacturing development.
Marketing and Distribution -- Worldwide Ceilings'
products are sold primarily in markets related to the
new construction and renovation of commercial buildings.
Marketing and distribution are conducted through a network of
distributors, installation contractors, L&W Supply, and home
improvement centers.
Competition -- The Corporation estimates that it is the
second-largest producer/marketer of acoustical ceiling tile in
the world. Principal global competitors include Armstrong World
Industries, Inc., OWA Faserplattenwerk GmbH (Odenwald) and BPB
Celotex. As noted above, Armstrong World Industries, Inc., the
world's largest manufacturer of acoustical ceiling tile, filed
Chapter 11 bankruptcy in the fourth quarter of 2000 in response
to pending and potential asbestos litigation filings. The
Corporation estimates that it is the world's largest manufacturer
of ceiling grid. Principal competitors in ceiling grid include
WAVE (a joint venture between Armstrong World Industries, Inc.
and Worthington Industries) and Chicago Metallic Corporation.
(C) BUILDING PRODUCTS DISTRIBUTION -- About 30% of Revenues
Business -- Building Products Distribution consists of
L&W Supply, the leading distributor of wallboard and related
building products in the United States. In 2000, L&W Supply
distributed approximately 11% of all gypsum wallboard in the
United States (including approximately 28% of U.S. Gypsum's
wallboard production). |
