Does anyone know what the status of the FAIR Act is? If it does not pass, USC is in big trouble (i.e. 3 billion becomes due). See below from the SEC filing:
The Reorganized Debtors also issued to the Trust a contingent payment note in the aggregate principal amount of $3.05 billion, which, as described more fully below, will be payable to the Trust depending upon whether the Fairness in Asbestos Injury Resolution Act of 2005 or substantially similar legislation creating a national trust or similar fund (collectively, the "FAIR Act") is enacted by the 10th day (excluding Sundays) after final adjournment of the current term of Congress (the "Trigger Date"), which is currently expected to occur no later than December 2006.
The Reorganized Debtors are co-obligors and are jointly and severally liable under the $10 million promissory note and the $3.05 billion contingent payment note. Each of the notes is secured by an obligation to pledge to the Trust shares of the voting stock of the Corporation equal to 51% of the number of shares outstanding. The obligation to pledge those shares would be triggered by a payment default under the applicable note.
As provided in the Plan, if the FAIR Act is enacted and made law on or before the Trigger Date and is not subject to, or survives, a constitutional challenge initiated within 60 days of the Trigger Date, the contingent payment note will be cancelled and the Reorganized Debtors will have no further payment obligations to the Trust. In that situation, the total amount to be paid by the Reorganized Debtors to the Trust will be the $890 million paid to the Trust on the Effective Date and the obligations under the $10 million promissory note.
If the FAIR Act is not enacted and made law by the Trigger Date, the Reorganized Debtors will be obligated to make payments under the contingent payment note as follows: $1.9 billion will be payable to the Trust within 30 days after the Trigger Date, with the remaining $1.15 billion payable within 180 days after the Trigger Date. Interest will accrue on the unpaid balance of the $3.05 billion contingent payment note beginning on the Trigger Date. The rate of interest is the rate of the 90-
FAIR has been dead for most of a year now. If there are even whispers of FAIR passing, you can count on a $20-$30 pop in the price. NOONE is pricing FAIR into USG's price. I always knew that Buffett would buy this out from under us for cheap.