Owens-Illinois Asbestos Trust Annual Reports, 2022–2025

Owens-Illinois ended 2025 with $549.96 million in net assets, up $12.57 million. Interest and dividends of $17.03 million and unrealized investment gains of $31.82 million exceeded $0.15 million in realized losses, $29.56 million in recognized claims settlements, approximately $5.67 million in investment advisory, administrative, claims-processing, and professional-service expenses, and $0.93 million in federal income tax expense. Lower settlement expense and stronger unrealized gains supported the improvement from 2024.

The narrative reports 1,837 unliquidated claims paid for approximately $30.59 million and 24 pre-petition liquidated claims paid for approximately $1.74 million. These cash payments exceeded current-year settlement expense as settled-claims payables declined by $2.78 million. Net operating cash outflows were $18.17 million, and cash and cash equivalents fell to $45.59 million following additional net investment purchases. Year-end allocation was 68.2% fixed income, including cash, and 31.8% equities. The increase in net assets relied substantially on unrealized appreciation, while payments and operating costs continued to consume cash.

Owens-Illinois’ net assets declined by $26.38 million in 2024 to $537.39 million as recognized claims settlements increased to $54.83 million. Interest and dividends of $19.59 million and unrealized gains of $16.38 million helped offset those settlements, with realized investment losses of $0.28 million. Investment advisory, administrative, claims-processing, and professional-service expenses totaled approximately $5.13 million, and federal income tax expense was $2.15 million.

The Trust began paying unliquidated claims during 2024, reporting 3,059 such claims paid for approximately $51.80 million, plus seven pre-petition liquidated claims paid for approximately $0.88 million. Those payment totals are distinct from the $54.83 million settlement expense; settled-claims payables increased by $2.18 million during the year. Net operating cash outflows were $38.39 million, funded in part by net investment sales, and cash ended at $70.95 million. The portfolio allocation was 72.7% fixed income, including cash, and 27.3% equities. Investment gains softened the drawdown but did not fully replenish the larger claims commitments.

Owens-Illinois ended 2023 with $563.76 million in net assets, an increase of $10.87 million. Interest and dividends of $20.26 million and unrealized investment gains of $13.08 million outweighed $2.15 million in realized losses, $12.09 million in recognized claims settlements, approximately $5.90 million in investment advisory, administrative, claims-processing, and professional-service expenses, and $2.33 million in federal income tax expense. Positive investment results therefore more than covered the year’s recognized claims and costs.

The narrative reports 206 pre-petition liquidated claims paid for approximately $11.40 million. Although 10,069 unliquidated claims were received during the year, none were paid. The payment figure differs from settlement expense because settlements are recognized when approved, before all payments are disbursed. Cash and cash equivalents fell from $325.32 million to $63.07 million as the Trust deployed funds into investments; that cash reduction should not be mistaken for an equivalent loss of net assets. Year-end allocation was 82.3% fixed income, including cash, and 17.7% equities.

Owens-Illinois’ first annual report covers July 8, 2022, its inception date, through December 31, 2022. Initial funding totaled $610.00 million, consisting of $601.50 million from O-I Glass and an $8.50 million Paddock payment note that was paid in full that July. The Trust ended the period with $552.89 million in net assets. Interest and dividends contributed $7.38 million, with $0.15 million in unrealized gains and $0.21 million in realized investment losses. Investment advisory, administrative, claims-processing, and professional-service expenses totaled approximately $2.96 million, and federal income tax expense was $1.53 million.

The Trust began accepting claims on October 3 and paid 439 pre-petition liquidated claims totaling $59.94 million, matching the financial statements’ claims-settled amount. It received 42,657 unliquidated claims but paid none during the period. Cash and cash equivalents were $325.32 million at year end, and the reported portfolio allocation was 97.7% fixed income, including cash, and 2.3% equities. The large increase from zero net assets reflects initial funding rather than investment performance. The narrative mistakenly appends “million” to the full $59,941,250 payment figure; the audited statements establish the amount as $59.94 million.