According to the filing, the reduction reflects the decline in the fair value, from June 30 to Sept. 30, of the shares of its common shares that are to be transferred to a trust that was set up as part of the asbestos settlement.In May, PPG, along with insurers agreed to pay $2.7 billion to resolve all asbestos-related personal-injury litigation through the bankruptcy proceedings of Pittsburgh Corning Corp., in which the company has a 50% stake.PPG was caught up in the litigation primarily through its half ownership of Pittsburgh Corning, a building-materials maker that manufactured pipe insulation containing asbestos from 1962 to 1972. Pittsburgh Corning filed for Chapter 11 protection from creditors in 2000, citing rising asbestos claims.
The agreement will funnel all current and future claims through a trust to be set up under bankruptcy law. The trust will administer and pay all the claims.
Under the terms of the settlement, the insurers will contribute about two- thirds of the $2.7 billion total for the trust fund, while PPG will pay roughly $998 million in cash over a 21 year period, all its stake in Pittsburg Corning, and 1.4 million shares of its common stock, the filing said.
The company said its first payment to the trust is scheduled to made next June.
PPG Industries Says Asbestos Liability Fell By $24 Million In 3rd Quarter
The liability for an asbestos settlement involving PPG Industries Inc. was reduced by $24 million during the third quarter ended Sept. 30, the company said in its latest 10-Q filed Wednesday with the Securities and Exchange Commission.