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Latham & Watkins Represents Paddock in Successful Emergence from Chapter 11
July 20, 2022
Multidisciplinary team advised on the debtor’s Chapter 11 case and consensual section 524(g) plan of reorganization that provides for cash and other consideration totaling US$610 million funded to an Asbestos Trust to resolve legacy liabilities.
O-I Glass, Inc. announced that its wholly owned subsidiary, Paddock Enterprises, LLC (“Paddock”), has emerged from Chapter 11 protection, following affirmation by the US 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 US 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. 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. The Plan channels all Asbestos Claims to the Asbestos Trust.
Latham & Watkins LLP represented Paddock in the transaction with a team led by Los Angeles partner and Global Vice Chair of the Restructuring and Special Situations Practice Jeff Bjork and Los Angeles partners Kim Posin and Helena Tseregounis, New York partner and Global Chair of the Restructuring & Special Situations Practice George Davis, and Washington, D.C. counsel Chris Craige, with associates Brian Rosen, Jon Weichselbaum, Markus von der Marwitz, Deniz Irgi, and Isaac Ashworth. Advice was also provided on bankruptcy litigation matters by Los Angeles partner Amy Quartarolo, and on environmental matters by New York partner Kegan Brown, with associates Taylor West and Youlan Xiu.