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To: Spekulatius who wrote (25246)	11/11/2006 2:31:39 AM
From: Bart Hoenes	Respond to of 78750

Found this on OC: Name: Owens Corning Ticker: OC Current Price: $28.50 Market Cap: $1.58 billion Insider Action: Buying Date of Trade: 11/7/2006 Average Price: $27.40 Comments: Does Chapter 11 bankruptcy create zombie companies that live on, their bosses able to run the businesses interest-free for years only to return with manageable debts and a competitive advantage that drags hitherto healthier rivals into their graves? Or does it offer otherwise sound companies a shot at starting over? Rather than shutting a firm because it cannot meet its obligations to creditors, as happens in many other countries, Chapter 11 gives a firm temporary protection from its creditors, as they work out if it has any value left and who should have what stake, be it equity or debt, in the company that eventually emerges from bankruptcy protection. It allows restructuring on three main fronts. First, companies caught out by disaster or legal liabilities can be forced to file for Chapter 11 out of desperation. But increasingly they can work out a deal in advance, and use the bankruptcy courts tax and creditor-voting advantages in some cases, approval is needed from only two-thirds of the lenders to get the deal signed. Thirdly, Chapter 11s abundant case law also encourages out-of-court restructurings by letting borrowers and creditors know what to expect if they go to court. The reputation of Chapter 11 is not helped by the sight of lawyers, accountants and other restructuring experts feeding off the carcass. But for salvaging ailing firms, the Chapter 11 model, with all its faults, is better than the alternatives. Take $1.58 billion (market cap) Owens Corning (Ticker: OC), the Toledo, OH-based building materials manufacturer whose insulation business fell foul of virulent asbestos-related litigation that dragged the whole group into bankruptcy. Last month it emerged from Chapter 11after creditors and shareholders, including asbestos, bondholder and trade creditors as well as the banks supported a plan under which OC segregated its asbestos liabilities in a trust. The trust absorbs all past and future asbestos responsibility, clearing the way for a clean reorganization of the company. In return, the trust receives monies for asbestos claimants in the form of cash, stock, insurance policies and profit-sharing plans. And OC receives a tax deduction on all payments into the trust. We are emerging from Chapter 11 in a strong operational and financial position, said David Brown, CEO and President. During the past six years, we have continued to grow our businesses around the world and have strengthened our financial performance. We are pleased to be emerging as an investment-grade company. On Tuesday, Mr. Brown backed his optimism with his own money, spending over $500,000 buying some 18,000 OC shares at $27.40 with Chairman and CFO Michael Thaman doing the same. Clearly these key directors think OC has emerged from bankruptcy refreshed and fit. Certainly its results for the first nine months of 2006 suggest their right: sales were a record $4.984 billion compared with $4.610 billion a year earlier, while after excluding items affecting comparability, adjusted income from operations was $426 million against $395 million for the first nine months of last year. Chapter 11 allowed OC to harness market forces to solve its asbestos litigation mess. Lifting that cloud will now have huge benefits for OC. The stock, at $28.50, is on a trailing p/e of just 2.35 (yes, 2.35). Insider Moves rates OC a Strong Buy. insidermoves.com