PPG anticipates asbestos trust funding in June 2016; no impact
to previously stated cash deployment targets
PITTSBURGH--(BUSINESS WIRE)--Apr. 27, 2016--
PPG (NYSE:PPG) today announced that the Pittsburgh Corning Plan of
Reorganization, including its asbestos channeling injunction, became
effective today. The plan also created the Pittsburgh Corning Asbestos
Trust to resolve channeled asbestos claims. The Pittsburgh Corning Plan
of Reorganization was confirmed by the Court in May 2013, and the
remaining legal challenges to the plan were withdrawn in January 2016.
Under the plan, PPG and other funding parties are required to make
initial contributions to the trust by early June. PPG’s initial trust
funding requirements are comprised of three components:
-
A cash payment of about $500 million. PPG will utilize cash on hand
for this funding, and the payment will have no impact on PPG’s
previously stated cash deployment targets.
-
The delivery of approximately 2.8 million shares of PPG common stock
or cash equal to the fair value of these shares. To hedge PPG’s cash
exposure, the company previously established equity forward
arrangements for these shares, allowing the company to purchase these
shares for about $22 per share. These shares are currently, and will
remain, in the company’s outstanding diluted share count.
-
The delivery of the company’s shares of Pittsburgh Corning Europe N.V.
The company is required to make future cash payments to the trust
totaling about $350 million through 2023. These future payments may be
prepaid at any time at a discount rate of 5.5 percent per annum as of
the prepayment date. The company’s funding obligations will be applied
against a previously established reserve of approximately $1.05 billion.
Additional information about the Pittsburgh Corning Plan of
Reorganization and the company’s obligations under the plan can be found
in PPG’s 2015 Annual Report on Form 10-K. PPG and Corning Incorporated
were each 50-percent shareholders of Pittsburgh Corning, which filed for
Chapter 11 bankruptcy protection in 2000. As part of the plan, those
shares of Pittsburgh Corning were canceled, and the trust became the
sole shareholder of the reorganized Pittsburgh Corning.
PPG: WE PROTECT AND BEAUTIFY THE WORLD™
At PPG (NYSE:PPG), we work every day to develop and deliver the paints,
coatings and materials that our customers have trusted for more than 130
years. Through dedication and creativity, we solve our customers’
biggest challenges, collaborating closely to find the right path
forward. With headquarters in Pittsburgh, we operate and innovate in
more than 70 countries and reported net sales of $15.3 billion in 2015.
We serve customers in construction, consumer products, industrial and
transportation markets and aftermarkets. To learn more, visit www.ppg.com.
We protect and beautify the world is a trademark and the PPG
Logo is a registered trademark of PPG Industries Ohio, Inc.
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Source: PPG
PPG Media Contact:
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Corporate
Communications
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or
PPG
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Relations
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