Dow Corning Bankruptcy Plan Approved

A judge on Tuesday approved Dow Corning Corp.’s $4.5-billion plan to emerge from bankruptcy, which includes $3.2 billion to settle claims filed by women with silicone breast implants.

U.S. Bankruptcy Judge Arthur Spector confirmed the settlement during a 20-minute hearing, saying he would elaborate in a second opinion to be issued next week.

The judge cautioned that appeals could hold up payment to the claimants.

“There’s an awful lot ahead before any money is passed,” he said.

Spector didn’t specify in court how he had ruled on various issues.

However, Dow Corning spokesman T. Michael Jackson said the judge approved a provision barring additional lawsuits against Dow Corning’s corporate parents--Dow Chemical Co. and Corning Corp.--and a ban on punitive damages in any future lawsuit by implant recipients who don’t sign the agreement.

The judge also approved a provision allowing implant recipients to reapply for compensation if their medical condition worsens, said Elizabeth Cadraser, a San Francisco attorney representing implant recipients.

The settlement provides $3.2 billion to settle claims by 170,000 women who say their implants caused various illnesses. The bankruptcy plan includes an additional $1.3 billion to settle other claims, including those from creditors and health-care organizations.

Objectors to the plan include 50 women from Nevada, where the state Supreme Court has upheld a civil decision against Dow Chemical.

Dow Corning, which no longer makes silicone breast implants, declared bankruptcy in 1995 after thousands of women sued over implants they said made them sick with various auto-immune related illnesses.