O-i Glass, Inc. · NYSE:OI
O-i Glass — Corporate Update (January 2020)
10 slides from O-i Glass's corporate update, Jan 6, 2020
Slide 1: Paddock Enterprises Seeks Final and Equitable Resolution to Legacy Asbestos-Related Claims
PADDOCK ENTERPRISES, LLC ( An O - I Glass, Inc. Affiliate ) Seeks A Final And Equitable Resolution To Its Legacy Asbestos - Related Claims January 6, 2020
Slide 2: Safe Harbor Comments
2 SAFE HARBOR COMMENTS Forward - Looking Statements These slides contain “forward - looking” statements related to O - I Glass, Inc. ("O - I Glass" or the "Company") within the meaning o f Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and Section 27A of the Secu
Slide 3: Executing on O-I Glass' Investment Thesis
3 EXECUTING ON O - I GLASS’ INVESTMENT THESIS STRONG MARKET POSITION ◉ Leading Global Glass Producer ◉ Strategic Blue Chip Customer Base ◉ Glass Set to Win in Green Economy OPTIMIZE CAPITAL STRUCTURE ◉ Strategic Portfolio Review ◉ De - risk Legacy Liabilities IMPROVE OPERATIONS ◉ Revenue / Mix Optim
Slide 4: Highlights
HIGHLIGHTS 4 ● The Company is taking steps to permanently resolve its legacy asbestos - related liability ◉ Legacy liability stems from manufacturing of a thermal insulation product called “ Kaylo ” from 1948 – 1958 ◉ Exited the business in 1958 and incurred ~ $5B gross expense for its Kaylo asbesto
Slide 5: Background
BACKGROUND 5 ● The Company operated a former business unit that produced / sold a thermal insulation product called “ Kaylo ” ◉ Years of operation: 1948 to 1958 (sold unit in April 1958) ● The Company has incurred significant costs to resolve asbestos - related lawsuits and claims. Through 9/30/19:
Slide 6: Why File Chapter 11 Now?
WHY FILE CHAPTER 11 NOW? Positive legal developments, benefits of federal court procedures and deteriorating tort environment make a Chapter 11 Reorganization the right choice to manage Paddock’s legacy asbestos - related liability 6 ● Fresh eye review of Asbestos strategy ● Chapter 11 option now mo
Slide 7: Key Implications and Next Steps
KEY IMPLICATIONS AND NEXT STEPS Business as usual for O - I Glass. Asbestos - related liability subject to final determination in bankruptcy court. Pending final determination, asbestos - related claims payments suspended, benefiting FCF and providing greater capital allocation flexibility. 7 ● Busi
Slide 8: Appendix
Appendix
Slide 9: Structure Comparison
STRUCTURE COMPARISON 9 Former Organizational Structure New Organizational Structure Owens Illinois, Inc (“Old Holdings”) Owens Illinois Group (“Company”) Subsidiaries Old Holdings/ Merger Survivor Owens Illinois Group (“Company”) Subsidiaries New Holdings Public Shareholders Public Shareholders Owen
Slide 10: Typical Asbestos-Related Bankruptcy Filing Process
TYPICAL ASBESTOS - RELATED BANKRUPTCY FILING PROCESS ● Bankruptcy filing accepted into court system ● Litigation/negotiation process begins ◉ Process typically takes anywhere from 1 to 7 years to run its course ◉ Asbestos - related claims payments suspended pending final determination ● Final determ