Erroneous Bankruptcy Report, Surge in Claims Prompt USG Corp. to Issue Statement Concerning Chapter 11

photo-11 CHICAGO - Wallboard-maker USG Corp. has announced that it is considering Chapter 11 as one of its strategies for dealing with the company's rapidly mounting costs related to asbestos litigation.

The June 4 announcement is simply an indication that the company is headed for bankruptcy reorganization and a bigger hint that its efforts to effectively manage its asbestos-related liability through the introduction of legislation may be reaching a critical point.

"We continue to believe that appropriate legislation would provide the best solution to the asbestos problem," said William C. Foote, USG's chairman, president and CEO in a statement released …