Dow Corning Creditors Propose Plan

Women suing Dow Corning Corp. for alleged harm from the company’s silicone breast implants and the company’s creditors proposed that Dow Corning provide about $2.95 billion to settle their claims. The agreement between the plaintiffs and creditors challenges Dow Corning’s own $3 billion reorganization plan to emerge from Chapter 11 bankruptcy protection, under which it has been operating since May 1995. The groups said they agreed on principal terms and conditions for the rival reorganization plan and are seeking approval from the U.S. Bankruptcy Court in Bay City, Mich., to file their joint plan. Dow Corning, a joint venture between Dow Chemical Co. and Corning Inc., would emerge from bankruptcy in 12 months under the plan, they said. A Dow Corning spokeswoman said the company had not yet seen the creditors’ plan and had no comment.