Dow Corning Corp. emerged from bankruptcy this month, ending a nine-year ordeal triggered by lawsuits filed by women who received silicone-gel breast implants. The case was the longest Chapter 11 bankruptcy ever in the United States. Dow Corning is the worlds largest supplier of silicone products, including lubricants.
The case was closed after a federal judge approved a $1.2 billion commercial creditor payment plan, removing the companys last major hurdle. The plan calls for commercial creditors – those that did not have personal injury claims – to receive full payment plus compounded interest.
Officials with the Midland, Michigan-based company said completion of its case will allow it to return full attention to its business, which makes more than 7,000 silicones and silicon-based products ranging from lubricants to sealants to adhesives, dryer sheets and additives for paints, rubber, cleaners and pharmaceuticals.
Dow Cornings emergence from Chapter 11 will allow us to focus squarely on what we do best – providing products, services and business solutions to help our customers succeed, Chairman Gary E. Anderson said.
Earlier this year courts resolved the last disputes over a settlement plan for personal injury claims associated with breast and other bodily implants. The plan, approved by the bankruptcy court five years ago, calls for Dow Corning to pay $2.3 billion over 16 years.
In announcing its emergence from bankruptcy June 1, Dow Corning, a 50-50 joint venture between Dow Chemical Co. and Corning Inc., noted that breast implants never accounted for more than 1 percent of its business. The company also reiterated its stance that breast implants do not cause disease. Plaintiffs who sued the company claimed implants caused a variety of diseases ranging from lupus and rheumatoid arthritis to carpal tunnel syndrome.
Dow Corning markets a wide range of silicone and mineral oil based lubricants, specialty lubricant compounds and anti-friction coatings under the Molykote brand name.