Owens Corning announced that in order to address the growing demands on its cash flow resulting from its multibillion dollar asbestos liability, the company has voluntarily filed for reorganization under Chapter 11.

Owens Corning, Toledo, Ohio, announced that, in order to address the growing demands on its cash flow resulting from its multibillion dollar asbestos liability, the company has voluntarily filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code. The filing will enable Owens Corning to refocus on operating its business and serving its customers, while it develops a plan of reorganization that will resolve its asbestos and other liabilities and provide a suitable capital structure for long-term growth.

Owens Corning also announced that, in order to enhance its liquidity, it has obtained a $500 million debtor-in-possession financing commitment from Bank of America. Upon court approval, these funds will be available to the company to help meet its future needs and fulfill obligations associated with operating its business, including payment under normal terms to suppliers and vendors for all goods and services that are provided after the filing.