
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: TUESDAY, May 16, 1995                   TAG: 9505160097
SECTION: NATIONAL/INTERNATIONAL                    PAGE: A-1   EDITION: METRO 
SOURCE: Associated Press
DATELINE: BIRMINGHAM, ALA.                                LENGTH: Medium

DOW CORNING CHAPTER 11 FILING MAY STALL IMPLANT CLAIMS

Dow Corning Corp. filed for bankruptcy protection Monday in a move that could keep thousands of women waiting years to collect so much as a dime from a $4.25 billion breast-implant settlement.

The move jeopardizes the already shaky settlement, crafted by a federal judge in Birmingham, because Dow Corning - once the world's No. 1 maker of implants - is supposed to contribute nearly half the money.

The bankruptcy filing could also delay or reduce payments for women who are suing Dow Corning over health problems such as lupus and breast hardening.

``The fact that the corporation will not be responsible for its mess is outrageous,'' said Joan Rice of Potomac, Md., who had her Dow Corning implants taken out.

A leader of an advocacy group for implant recipients said she was flooded with scores of calls from women distressed at the thought of lengthy bankruptcy proceedings and more delays in payments for surgery to have implants removed.

``There are women threatening suicide about this,'' said Gail Armstrong of the National Breast Implant Coalition in Dallas.

Dow Corning, based in Midland, Mich., filed for protection under Chapter 11 of the U.S. bankruptcy code in Bay City, Mich., citing potentially astronomical expenses from liability lawsuits.

Corning Inc. operates a plant in Christiansburg that employs more than 190 workers who make parts for catalytic converters. John Yearick, the plant's personnel director, said Dow Corning's bankruptcy proceedings would have no effect on the Corning plant.

Big companies in other major product liability cases have taken similar action, delaying payments to claimants for years.

In the case of Manville Corp., asbestos claims brought 10 years ago are only now getting paid, and at a rate of 10 cents on the dollar. Some asbestos victims have died in the meantime.

Women in the Dalkon Shield birth-control case had to wait years because of a bankruptcy filing by A.H. Robins & Co. But more than 96 percent of claims have been paid.

Dow Corning said women had no reason to be upset with the company. Seeking Chapter 11 protection should help Dow Corning survive to pay its share of the settlement, said T. Michael Jackson, a spokesman.

Nonetheless, the move raises the possibility that the company won't pay 100 cents on the dollar for its debts.

Under Chapter 11, a company gets a reprieve from bills while it works out a way to pay creditors and survive as a healthy business. Its business decisions are subject to approval by a judge.

by CNB