According to U.S. Newswire, Owens Corning has reached a $5.2 billion dollar agreement to resolve current and future asbestos claims, which would allow the world's largest producer of insulation products to emerge from bankruptcy with no further obligations for asbestos liability.

The agreement requires the company to pay approximately $2.9 billion dollars in cash into a trust for asbestos victims. Owens Corning will make further payments to the asbestos victims' trust within 10 days of the end of this year's Congressional session in the amount of $1.39 billion. The company also will deliver to the trust 28.6 million shares of equity in the reorganized company. The value of these payments and equity totals in excess of $5.2 billion dollars. The settlement of this case will resolve all of the asbestos liability of the various divisions of Owens Corning as well as their wholly owned subsidiary, the Fiberboard Corporation.

According to John D. Cooney, of the Chicago law firm of Cooney & Conway, the terms of the deal could be altered in the event that federal legislation were to be passed by the United States Congress this year. In such an event, the obligations for the payment of the Owens Corning liability of over $5.2 billion dollars would shift from Owens Corning to taxpayers or other companies.