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Paddock’s third amended plan became effective July 8, 2022, after Judge Laurie Selber Silverstein confirmed it on May 26 and the District Court affirmed on June 22 source filing. The plan made Class 3 asbestos claims the only voting class and channeled all present and future asbestos claims to a section 524(g) trust; other classes were unimpaired. The confirmation order found the asbestos voting class accepted the plan by 99.993% in number and 99.997% in amount, with 69,171 properly cast asbestos votes source filing.
Economically, O-I Glass funded the trust with $601.5 million of cash plus a pledge, while reorganized Paddock issued an $8.5 million payment note secured by 100% of its equity and maintained at least $10 million of cash reserves for non-asbestos and professional claims source filing. The effective-date notice put the channeling injunction and plan releases into full force and made the asbestos trust the sole recourse for asbestos claims source filing.
Paddock Enterprises opened a Delaware Chapter 11 to isolate and resolve legacy asbestos claims tied to Owens-Illinois. The petition listed former name Owens-Illinois, Inc., 1,000-5,000 creditors, and both assets and liabilities of $100 million-$500 million source filing. President and CRO David Gordon said Paddock was a direct wholly owned subsidiary of O-I Glass after a December 2019 corporate modernization, had no employees and no funded debt, held about $40.6 million of cash, owned a Lapel, Indiana ground lease plus Meigs real-estate interests, and relied on an O-I Glass support agreement requiring funding for permitted uses without repayment source filing. The U.S. Trustee appointed an official committee of asbestos personal injury claimants on January 16, putting current asbestos plaintiffs at the center of the case from the outset source filing.
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