Paddock Enterprises LLC Asbestos Exposure: Owens-Illinois Kaylo, Trust Claims & Compensation

Paddock Enterprises, LLC is the reorganized successor connected to legacy Owens-Illinois asbestos liabilities. The core historical product is Kaylo, a high-temperature thermal insulation made and sold by Owens-Illinois during 1948–1958. Published appellate decisions identify Kaylo as asbestos-containing pipe covering and block insulation, and one federal decision states Kaylo contained approximately 15% asbestos.

Paddock filed Chapter 11 on January 6, 2020. Its confirmed plan became effective July 8, 2022 and established the Owens-Illinois Asbestos Personal Injury Trust under Bankruptcy Code §524(g), funded with $610 million in total consideration. The Trust began accepting claims October 3, 2022. Most importantly for current claim information, the official Trust now states a 65% Payment Percentage for both Expedited Review Scheduled Values and Individual Review gross settlement values. This increased from 50% in an official August 19, 2026 notice.

🏢 Paddock, Owens-Illinois & Kaylo History

Owens-Illinois manufactured Kaylo insulation from 1948 until 1958. In 1958, Owens-Illinois sold the Kaylo product line to Owens-Corning Fiberglas. Decades later, a 2019 corporate restructuring isolated legacy asbestos liabilities in Paddock Enterprises, which became successor by merger to Owens-Illinois, Inc. Paddock then entered Chapter 11 in Delaware.

Company & Bankruptcy Facts

Topic	Confirmed information
Historical manufacturer	Owens-Illinois, Inc.
Legacy asbestos product	Kaylo thermal insulation.
Owens-Illinois Kaylo period	1948–1958.
Kaylo sale	Product line sold to Owens-Corning in 1958.
Paddock role	Successor by merger to Owens-Illinois, Inc.; legacy asbestos liabilities placed in Paddock.
Chapter 11 filing	January 6, 2020.
Bankruptcy case	In re Paddock Enterprises, LLC, Case No. 20-10028 (LSS), District of Delaware.
Plan effective	July 8, 2022.
Trust	Owens-Illinois Asbestos Personal Injury Trust.

Reorganization Timeline

Date	Development
1948–1958	Owens-Illinois manufactured/sold Kaylo.
1958	Kaylo line sold to Owens-Corning.
December 2019	Corporate restructuring placed legacy asbestos liabilities in Paddock.
January 6, 2020	Paddock filed Chapter 11.
May 26, 2022	Bankruptcy Court confirmed plan.
June 22, 2022	District Court affirmed confirmation.
July 8, 2022	Plan effective; §524(g) trust framework became operative.
October 3, 2022	Trust began accepting Owens-Illinois asbestos claims.
August 19, 2026	Trust increased Payment Percentage from 50% to 65%.

See Construction Materials Companies & Asbestos Exposure.

🧱 Owens-Illinois Kaylo Asbestos Products

Kaylo is the principal asbestos product tied to Paddock’s legacy liabilities. Court records describe Kaylo as industrial high-temperature thermal insulation in pipe-covering and block forms. A Sixth Circuit decision states that Kaylo contained approximately 15% asbestos.

Documented Kaylo Products

Product / form	Evidence-based treatment
Kaylo pipe covering	Published Maryland appellate decision identifies asbestos-containing Kaylo pipe covering.
Kaylo block insulation	Same decision documents asbestos-containing insulation blocks used on boilers.
Kaylo heat insulation	Federal appellate litigation describes Kaylo as asbestos-containing heat insulation.
Kaylo composition	Sixth Circuit decision states Kaylo contained approximately 15% asbestos.
Owens-Illinois production	1948–1958 period is confirmed in corporate/SEC and court records.
Post-1958 Kaylo	Owens-Corning acquired the product line; manufacturer/exposure date matters for trust attribution.

Product Accuracy Rules

Statement	Accurate treatment
Owens-Illinois Kaylo contained asbestos	Confirmed.
Kaylo included pipe covering and block insulation	Confirmed.
Owens-Illinois made Kaylo indefinitely	No; its documented period ended with the 1958 sale.
Every asbestos exposure after 1958 belongs to Paddock/O-I Trust	No.
Owens-Corning later manufactured Kaylo	Confirmed in court records.
Product and exposure dates matter	Yes.

👷 Workers, Shipyards & Jobsites

Kaylo was used around boilers, piping and other high-temperature systems. Published cases document exposure among shipyard laborers, welders, insulators and other trades working in boiler rooms, engine rooms and industrial settings.

Workers & Trades to Investigate

Worker / trade	Potential historical activity
Insulators / pipe coverers	Cutting and installing Kaylo pipe covering/block.
Boilermakers	Working near Kaylo block insulation on boilers.
Shipyard laborers	Cleaning Kaylo dust and debris.
Welders	Working near pipe-covering and boiler-insulation installation.
Pipefitters	Working around insulated pipe systems.
Stationary engineers	Operating/maintaining insulated mechanical systems.
Maintenance workers	Repairing/removing historical thermal insulation.
Nearby trades	Potential bystander exposure during dusty installation/removal.

Documented / Investigative Settings

Setting	Evidence
Bethlehem Steel shipyards	Maryland appellate case documents Kaylo exposure in ship engine/boiler rooms.
Industrial boiler rooms	Kaylo block/pipe insulation was used for high-temperature thermal systems.
Power/process facilities	Historical insulation specifications and purchasing records may identify Kaylo.
Ship construction/repair	Cutting/fitting pipe covering could generate dust.
Commercial mechanical rooms	Product-specific records needed.
Other jobsites	Trust Approved Site List and claimant-specific evidence may assist.

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🌫️ How Kaylo Asbestos Exposure Occurred

Historical Kaylo work could release asbestos-containing dust when pipe covering or insulation blocks were cut, fitted, installed, removed or broken. Cleanup could also disturb accumulated debris. Trust eligibility still depends on medical and exposure criteria rather than merely having worked in a building where insulation existed.

Potential Exposure Activities

Activity	Potential pathway
Cutting pipe covering	Dust generated while sizing Kaylo insulation.
Fitting block insulation	Dust during boiler/high-temperature installation.
Removal / repair	Disturbance of aged insulation.
Shipyard work nearby	Bystander exposure during installation/cutting.
Sweeping / cleanup	Re-suspension of Kaylo debris and dust.
Maintenance	Disturbing insulated piping/equipment.

Exposure Questions

Question	Why it matters
Was the product Kaylo?	Core Owens-Illinois legacy product.
Was exposure during the Owens-Illinois responsibility period?	Manufacturer and date affect claim attribution.
Where did exposure occur?	Trust site/product evidence matters.
What work generated dust?	Supports exposure pathway.
How often and how close was claimant?	Relevant to occupational exposure criteria.
Can coworkers or records corroborate use?	Strengthens Trust exposure proof.

⚖️ Owens-Illinois Asbestos Trust & Claims

The Owens-Illinois Asbestos Personal Injury Trust was formed in 2022 from the Paddock reorganization to resolve qualifying asbestos claims. The official Trust website currently states that the Payment Percentage is 65% of Scheduled Value for Expedited Review and 65% of gross settlement value for Individual Review. The Trust announced the increase on August 19, 2026.

Current Trust Facts

Trust fact	Confirmed information
Trust	Owens-Illinois Asbestos Personal Injury Trust.
Formed	2022 through Paddock’s confirmed reorganization.
Plan effective	July 8, 2022.
Initial funding	$610 million total consideration, per SEC filings.
Claims accepted beginning	October 3, 2022.
Current Payment Percentage	65%.
Current rate announced	August 19, 2026; increased from 50%.
Expedited Review	65% of Scheduled Value.
Individual Review	65% of gross settlement/liquidated value, subject to TDP.
Supplemental payments	Official increase notice provides treatment for claimants previously paid at a lower percentage under TDP §4.3.

Official Disease Values

Disease Level	Scheduled / Average / Maximum
Level VIII — Mesothelioma	$100,000 / $145,300 / $382,600.
Level VII — Lung Cancer 1	$25,000 / $55,900 / $100,700.
Level VI — Lung Cancer 2	No Scheduled Value / $29,400 / $53,000.
Level V — Other Cancer	$10,800 / $13,400 / $32,400.
Level IV — Severe Asbestosis	$28,200 / $39,400 / $82,400.
Level III — Asbestosis/Pleural Disease	$5,900 / no Average / no Maximum listed.
Level II — Asbestosis/Pleural Disease	$2,900 / no Average / no Maximum listed.
Level I — Other Asbestos Disease	$400 Cash Discount Payment.

65% Expedited-Review Examples

Scheduled Value	Mathematical illustration at 65%
$100,000 mesothelioma	$65,000.
$25,000 Lung Cancer 1	$16,250.
$10,800 Other Cancer	$7,020.
$28,200 Severe Asbestosis	$18,330.
$5,900 Level III	$3,835.
$2,900 Level II	$1,885.
$400 Level I	$260.

These are mathematical illustrations, not guaranteed claim payments. A claimant must satisfy the TDP, and Individual Review values may be higher or lower than Scheduled Value subject to applicable limits and the Payment Percentage.

📊 Documented Kaylo Asbestos Cases

Published cases document Kaylo’s asbestos content, Owens-Illinois’ manufacturing period and occupational exposure circumstances. These cases provide historical/product evidence but do not establish that every person who encountered insulation has a compensable claim.

Selected Records

Record	Significance
Owens-Illinois v. Armstrong, Md. Ct. Spec. App. (1991)	Identifies Kaylo as asbestos-containing high-temperature insulation in pipe-covering/block form; documents dusty shipyard exposure.
Strickland v. Owens Corning, 6th Cir. (1998)	States Kaylo contained approximately 15% asbestos and traces Owens-Corning distribution/manufacture after Owens-Illinois.
Parrish/Coyle v. Owens-Corning, Ky. Ct. App. (1998)	States Owens-Illinois manufactured asbestos-containing Kaylo from early 1940s until 1958 and discusses historical hazard testing.
Paddock bankruptcy, D. Del.	Confirms Paddock as reorganized debtor and O-I Trust after July 8, 2022.
O-I Glass SEC filings	Confirm $610 million funding, §524(g) trust and channeling injunction.
Official O-I Trust	Confirms active claims process and current 65% Payment Percentage.

Evidence Limits

Finding	Correct interpretation
Kaylo contained asbestos	Confirmed.
Owens-Illinois manufactured Kaylo	Confirmed for historical period.
Paddock inherited legacy asbestos liabilities	Confirmed.
Every post-1958 Kaylo exposure is an O-I Trust claim	No.
$100,000 Scheduled Value means $100,000 current payment	No; current ER percentage is 65%.
65% guarantees payment	No; eligibility and TDP requirements apply.

📋 Claim Evidence & Trust Requirements

The Trust’s TDP establishes medical and exposure requirements. Claimants may choose Expedited Review or Individual Review where applicable. Exposure evidence can include claimant/coworker statements and documentary records; the Trust also maintains an Approved Site List.

Evidence That May Help

Medical/pathology documentation for the claimed Disease Level.
Employment, union and Social Security records.
Kaylo boxes, labels, photographs, invoices or specifications.
Shipyard, industrial or construction records.
Coworker or other exposure affidavits.
Evidence establishing relevant Owens-Illinois Kaylo exposure dates.
Trust Approved Site List evidence where applicable.
Current claim form and supporting documentation.

Claim Checklist

Step	Question
1	Is a qualifying asbestos disease documented?
2	Can Owens-Illinois/Kaylo exposure be established?
3	Are dates and jobsites documented?
4	Does exposure satisfy the applicable TDP criteria?
5	Is Expedited or Individual Review appropriate?
6	Are supporting affidavits/records complete?
7	Has the current 65% Payment Percentage been applied only after claim liquidation?
8	Are current filing/deadline rules satisfied?

Numbers We Do Not Invent

Item	Treatment
Future Payment Percentage	Can change under TDP.
Guaranteed Individual Review value	None.
Guaranteed mesothelioma payment	None.
Average claimant payment	Not inferred from aggregate data.
Current Trust assets	Not stated here without a current audited official figure.
Guaranteed compensation	None.

Compensation is not guaranteed.

❓ Frequently Asked Questions

What is Paddock Enterprises’ connection to asbestos?

Paddock became successor by merger to Owens-Illinois, Inc. and held legacy asbestos liabilities principally associated with historical Owens-Illinois Kaylo insulation.

Did Owens-Illinois Kaylo contain asbestos?

Yes. Published appellate decisions identify Kaylo as asbestos-containing thermal insulation, and a Sixth Circuit decision states it contained approximately 15% asbestos.

When did Paddock file Chapter 11?

Paddock Enterprises filed Chapter 11 on January 6, 2020 in the U.S. Bankruptcy Court for the District of Delaware.

Does Paddock have an asbestos trust?

The Paddock reorganization created the Owens-Illinois Asbestos Personal Injury Trust under §524(g). The plan became effective July 8, 2022.

What is the current Owens-Illinois Trust Payment Percentage?

The official Trust currently states 65% for Expedited Review Scheduled Values and 65% of gross settlement value for Individual Review. The increase from 50% was announced August 19, 2026.

What is the mesothelioma Scheduled Value?

The official Trust lists a $100,000 Scheduled Value for Level VIII mesothelioma. At the current 65% Payment Percentage, $100,000 × 0.65 equals $65,000 as a mathematical Expedited Review illustration, subject to claim approval and TDP requirements.

What is the difference between Owens-Illinois and Owens-Corning Kaylo exposure?

Owens-Illinois manufactured Kaylo before selling the product line to Owens-Corning in 1958. Exposure dates and product/manufacturer evidence therefore matter when identifying the responsible trust.

What evidence may support an O-I Trust claim?

Medical records, employment history, Kaylo product identification, jobsite records, invoices/specifications, Approved Site evidence and coworker statements may be relevant under the TDP.

🧾 Paddock Enterprises / Owens-Illinois Asbestos Summary

Detail	Confirmed / carefully qualified information
Debtor	Paddock Enterprises, LLC.
Historical predecessor	Owens-Illinois, Inc.
Primary asbestos product	Kaylo thermal pipe/block insulation.
Owens-Illinois Kaylo period	1948–1958 in official corporate bankruptcy materials.
Paddock Chapter 11	January 6, 2020.
Plan effective	July 8, 2022.
Trust	Owens-Illinois Asbestos Personal Injury Trust.
Initial funding	$610 million total consideration.
Claims opened	October 3, 2022.
Current Payment Percentage	65%, announced August 19, 2026.
Mesothelioma Scheduled Value	$100,000.
Mesothelioma ER illustration at 65%	$65,000, not guaranteed.
Guaranteed compensation	No.

📚 Confirmed Primary & Court Sources

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Working around insulation does not automatically establish a payable Owens-Illinois asbestos claim. Kaylo product identification, exposure dates, work history, medical evidence and current Trust Distribution Procedures must be evaluated individually. Payment percentages may change, and a Scheduled Value is not a guarantee of payment. Compensation is not guaranteed.

⚕️ Legal & Medical Information Disclaimer
This page provides general educational information and is not legal or medical advice. Consult qualified healthcare and legal professionals for individual guidance.