Owens Corning - Complicated Question

[Central Limit]

I have been following Owens Corning stock for a year or so now (ticker symbol = owenq). I have a question.

Situation: Owens Corning is in bankruptcy due to Asbestos related lawsuits. President Bush had proposed an asbestos relief fund to save companies like Owens Corning. That bill was essentially shotdown by congress a couple of weeks ago and the stock price has dropped by about 66%.

My understanding is the Owens Corning does not have enough cash to pay the lawsuits. But, Owens Corning is extremely profitable as a company right now. They just reported recorded record sales for 2005.

Question: What will happen to Owens Corning? Will they go out of business even though their current business is profitable because they can't pay their bills? What happens to companies in situations like this? If they go out of business, what will happen to fill the vacuum? Who will step in a produce the glass and building materials that had been produced by Owens Corning?

Anybody know? Any experts on chapter 11 around here?

Thanks.

[fflaque]

most likely, cancel out old shares and issue new ones