What is happening re USG & Chapter 11?

Discussion in 'Stocks' started by Becmec, Jan 17, 2006.

  1. Becmec


    Does anyone have any information about USG? According to the last record I could find on the net, they were supposed to present final proposals for re-organization on 31st December 2005 as their refuge in Chapter 11 was supposed to end then. The shares continue to rise dramatically - but why? Surely this is a company which will soon have to face up to the claims of asbestos victims that it has been avoiding since 2001?

    And why is there no news of the Chapter 11 hearings? Owens-Corning has recently presented a new plan to compensate victims but not a word of USG.

    A friend trading for me sold short some of these stocks last year - claiming that the company was bankrupt. Having suffered a huge loss already I am wondering whether to hold on hoping the stock will drop at least a bit or whether to bale out while I still have some money left?

    Can anyone help please?


  2. the senate is expected to change the law to give them some relief. speculation is that it will happen this year.that is why it is running.

  3. Becmec


    Yes, but all the recent news about the FAIR bill seems to suggest that it will be rejected as so many different groups are opposed to it, and there have been suggestions that George Bush doesn't support it.

    I see Owens Corning and WR Grace shares are also rising slowly but steadily, but at nowhere near the rate of USG which has gone from $27 to $75 in less than a year. Why is USG so special?
    Is there something obvious I don't know?


  4. hope you didnt stay short this thing. what a move today.