FOUNDATION FOR NEW ERA PHILANTHROPY ANNOUNCES FILING FOR VOLUNTARY
PROTECTION UNDER CHAPTER 11
RADNOR, Pa., May 15, 1995-- The HREF="chap11.newera.html">Foundation
for New Era Philanthropy today announced it has filed for voluntary protection under
Chapter 11 of the Federal Bankruptcy Code in the United States Bankruptcy Court, for the
Eastern District of Pennsylvania.
This was done to protect the rights of interested persons and to assure that
as it moves forward it does so in a way that is fair to all involved. The
Foundation said it intends to promptly ask the Bankruptcy Court to appoint
Coopers & Lybrand L.L.P. to act as independent accountants and consultants to
conduct a comprehensive financial analysis of the Foundation in order to gain
a full understanding of its assets, liabilities and its receipts and
disbursements history and to promptly report to the Court.
The Foundation has received inquiries from various government agencies and
said it intends to cooperate fully with them. The Foundation plans to provide
further information concerning its affairs in the near future.
/CONTACT: Neal Colton of Dechert Price & Rhoads, 215-994-2515, for the
Foundation for New Era Philanthropy/
DRAVO TO SETTLE CEA DISPUTE
PITTSBURGH, May 15, 1995 -- Dravo Corporation (NYSE: DRV) today
announced that it has reached an agreement in principle to settle the legal
dispute related to the coal gasification facility built by Dravo for
Continental Energy Associates (CEA) in Hazleton, Pa.
Currently in reorganization, CEA has committed as part of this agreement in
principle to seek approval for the settlement from the U.S. Bankruptcy Court.
After it is approved the settlement would resolve all disputes between the
various parties involved in the matter.
"In our view, the agreement in principle represents an equitable outcome for
all parties involved," commented Carl A. Gilbert, Dravo's president and chief
executive officer. "We expect to charge the $2.8 million Dravo contribution
against our previously established reserve for discontinued operations. As a
result, the settlement should not impact 1995 earnings," Mr. Gilbert added.
/CONTACT: Ron Sommer of Dravo, 412-566-5597/
Rockefeller Center Properties Inc. requests delay in trading
NEW YORK, New York--May 15, 1995--Rockefeller Center Properties Inc.
(RCPI) today announced that it has requested that the New York Stock Exchange
continue delaying the trading in its common stock pending the dissemination of
additional information concerning the Chapter 11 filing by the two
partnerships that are the Borrowers under RCPI's $1.3 billion convertible
mortgage loan.
RCPI is a mortgage real estate investment trust whose principal asset is a
$1.3 billion participating convertible mortgage loan to two partnerships
(Rockefeller Center Properties, which jointly own
Rockefeller Center and are 100%-controlled by Rockefeller Group Inc. (RGI).
Mitsubishi Estate Co. Ltd. controls an 80% equity interest in RGI, and
Rockefeller Family Interests hold the remaining 20%.
RCPI is listed on the New York Stock Exchange as RCP.
CONTACT: Gary Holmes, 212/484-7736
Tom Clohesy, 212/373-0231
DOW CORNING BANKRUPTCY NEWS: FIRST ISSUE FREE
PRINCETON, N.J., May 15, 1995 -- Bankruptcy Creditors' Service, Inc.,
today announced publication of DOW CORNING BANKRUPTCY NEWS.
"From today through Dow Corning's confirmation of a plan of reorganization,
DOW CORNING BANKRUPTCY NEWS will provide on-going in- depth news and reporting
about Dow Corning Corporation's attempts to restructure over
three billion dollars of debt, resolve once and for all the company's exposure to breast
implant personal injury claims, and take advantage of the chapter 11 system to
reorganize its business operations and emerge as a healthy company," says
Peter A. Chapman, President of Bankruptcy Creditors' Service, Inc., and Editor
of DOW CORNING BANKRUPTCY NEWS.
Chapman explains that attorneys, creditors, and investors involved in a
chapter 11 bankruptcy case of Dow Corning's magnitude find BCSI's
case-specific newsletters to be an invaluable resource while attempting to
wade through the mountains of paper and hours of court hearings.
Today's first issue of DOW CORNING BANKRUPTCY NEWS includes:
(i) background information about Dow Corning;
(ii) details from Dow Corning's chapter 11 bankruptcy
petition filed this morning in Bay City, Michigan; and
(iii) Dow Corning's list of its 20 largest unsecured
creditors;
Chapman says that next week's issue will provide subscribers with further
information concerning the handfuls of motions Dow Corning is bringing before
the bankruptcy court today in order to keep the business operating without
interruption from customers' and employees' perspectives.
DOW CORNING BANKRUPTCY NEWS is distributed on a subscription basis by
facsimile transmission or e-mail for $45 per issue plus nominal transmission
charges. New issues are published as significant activity occurs (generally
every 10 to 20 days) in the Dow Corning cases.
Chapman stated that one copy of today's first issue of DOW CORNING
BANKRUPTCY NEWS is available at no charge upon request.
Chapman further advised that free copies of Dow Corning Corporation's
popular pre-bankruptcy press releases and filings with the Securities and
Exchange Commission will be available later this week from the InterNet
Bankruptcy Library at href="URL:http://bankrupt.com/." target=_new>http://bankrupt.com">URL:http://bankrupt.com/.
/CONTACT: Peter A. Chapman of Bankruptcy Creditors' Service, Inc.,
609-924-8949, Telecopier 609-924-8963 or E-Mail to HREF="mailto:peter@bankrupt.com">peter@bankrupt.com/
CORNING INCORPORATED ISSUES STATEMENT IN RESPONSE TO DOW CORNING ACTION
CORNING, New York--May 15, 1995--In response to the announcement earlier
today that Dow Corning Corporation has voluntarily
chosen to file a petition for reorganization under Chapter 11 of the Federal
Bankruptcy Code, a spokesman for Corning Incorporated said today, "We understand
and support Dow Corning's decision to seek the protection of the court so that it may
continue to conduct its business and address the many aspects of this issue and the
attendant litigation in a rational, organized fashion.
Although it is unfortunate that these matters could not be resolved outside
of Chapter 11, we believe today's action will eventually allow Dow Corning to
emerge from the current environment as the ongoing, viable business it is."
The accounting impact this Dow Corning action will have on Corning is still
being evaluated. However, it is possible that Corning will be required to
write-off its investment in, and discontinue recognition of equity earnings
from Dow Corning. The book value of Corning's investment in Dow Corning is
approximately $364 million and Dow Corning contributed $73 million to earnings
before special charges in 1994 or approximately $0.35 per share.
Dow Corning is a 50 percent owned equity investment of Corning Incorporated
and The Dow Chemical Company.
Corning Incorporated (NYSE:GLW) is a Fortune 500 company with annual sales
of $4.8 billion. From its headquarters in Corning, N.Y., it operates
international businesses which focus on the communications, life sciences,
environment and consumer housewares markets.
CONTACT: Kathryn C. Littleton, 607/974-8206
John H. Abrams, 607/974-8832
DOW CORNING ACTION TO RESULT IN CHARGE AGAINST EARNINGS FOR DOW CHEMICAL
MIDLAND, Mich.--May 15, 1995-- Dow Corning Corporation
today announced that it has voluntarily filed for protection under Chapter 11 of the
United States Bankruptcy Code with the United States Bankruptcy Court in Bay
City, Michigan.
As a result of this action, The Dow Chemical Company (NYSE: DOW), a 50
percent shareholder in Dow Corning, has decided to establish a reserve for the
full amount of its investment of $374 million and to discontinue recording any
proportional share of future equity earnings. The charge will impact Dow
Chemical's second quarter of 1995 earnings by approximately $1.25 per share.
"As one of two shareholders in Dow Corning, it is our understanding that
this was the only viable alternative under today's existing tort system to
resolve the thousands of breast implant lawsuits pending against Dow Corning,"
said Enrique C. Falla, executive vice president. "We are disappointed that Dow
Corning was required to take this action despite substantial research that has
not shown a link between breast implants and the diseases alleged in
lawsuits."
/CONTACT: Doug Draper of Dow Chemical, 517-636-2876/
DOW CORNING VOLUNTARILY FILES FOR CHAPTER 11
MIDLAND, Mich., May 15, 1995 -- Dow Corning
Corporation today announced that it has voluntarily filed for protection under Chapter 11
of the United States Bankruptcy Code with the United States Bankruptcy Court in Bay
City, Michigan.
In announcing today's Chapter 11 filing, Dow Corning's management emphasized
that its underlying business remains strong and that its customers will not be
directly affected by this action. "Dow Corning will continue to supply
products to our customers, and compensate our suppliers and employees as we
have in the past," explained Richard A. Hazleton, Dow Corning chairman and
chief executive officer. "We decided to take this action while we are in a
position of financial strength, with the cash to continue operating our
business without disruption.
"We now believe this is our only reasonable choice for four principal
reasons. First, attorneys with lawsuits outside of the global settlement have
not reduced their exorbitant demands, threatening our long-term business and,
therefore, our ability to fund the global settlement. Despite the scientific
evidence showing no link between implants and disease, we were faced with
preparing for nearly 200 cases in the next 6 months. This represented a
potentially enormous financial and management drain which threatened our
business. Our Chapter 11 filing immediately stops all lawsuits against the
company," Hazleton explained.
"Second, when we file our financial reorganization plan, we hope to preserve
our participation in a global settlement, to which we have agreed to
contribute $2 billion. Even so, we are concerned about the settlement, since
many are calling for hundreds of millions or even billions of more dollars and
are predicting thousands of additional lawsuits. We are continuing
discussions with global settlement attorneys to reach a satisfactory
agreement. But, we have consistently said that we cannot both fund the global
settlement and afford large numbers of lawsuits outside of the settlement,"
Hazleton said.
"Third, several recent credit rating downgrades have confirmed the financial
community's long-term concerns about the lack of a certain and predictable
financial resolution to this controversy. This understandable concern is in
spite of the underlying strength of our business, which the ratings agencies
understand. The Chapter 11 process will provide closure by resolving all
breast implant financial claims," Hazleton explained.
"Finally, some of our insurance carriers have not accepted their
responsibility to commit to pay their share of the more than $1.5 billion
which we believe they will owe us. As of March 31, 1995, we had received less
than $100 million. We believe we will eventually be reimbursed, but we are
not satisfied with our progress," Hazleton said.
"This was a difficult decision," explained Hazleton. "We carefully
considered what effect this would have on our customers, employees, suppliers,
and communities, as well as women who have our implants. In our judgment, the
current and evolving circumstances surrounding the breast implant controversy
reached the point that we had to take this action now to preserve both the
fundamental strength of our business operations and our ability to fairly
compensate all women with breast implant claims."
"We are disappointed that our efforts to resolve this controversy without
resorting to a Chapter 11 filing were not successful. We negotiated a $4.25
billion global settlement, including $2 billion funding from Dow Corning over
30 years. We argued our case in court with a good deal of success. We also
committed more than $30 million in additional research to address the
remaining questions women have about their implants, and we funded an implant
removal reimbursement program for women who wanted to have their implants
removed but lacked the financial means to do so," Hazleton said.
"Research has not shown a link between breast implants and the diseases
alleged in lawsuits. Research from prestigious institutions like Harvard
University, Mayo Clinic, Johns Hopkins, the University of Michigan and others
has consistently found that women with implants are no more likely to contract
disease than women without implants. In fact, recently, both the French and
British governments have reviewed the available research and concluded that
women with implants face no greater risk of developing autoimmune disease than
the general population," Hazleton stated.
"Our focus now will be to maintain our strong business momentum by
continuing to meet our customers' needs. We also intend to work closely with
our key creditors and the creditor committees once they are appointed to
complete our financial restructuring and emerge from Chapter 11 as soon as
possible, although the entire process will probably take two years or more.
We have started this process by filing motions today with the court that will
minimize any disruption to our normal day-to-day operations," Hazleton
explained.
"We at Dow Corning deeply appreciate the outstanding support we have
received from our customers, employees, suppliers, business and financial
partners, and communities throughout this controversy. We intend to
demonstrate that their confidence in us has been well placed by supplying
quality products and growing our business throughout and following this
Chapter 11 proceeding," Hazleton concluded.
Dow Corning Corp., a global leader in silicon-based materials, is a Michigan
corporation with shares equally owned by The Dow Chemical Co. (NYSE: DOW) and
Corning Inc. (NYSE: GLW). More than half of Dow Corning's sales are outside
the U.S.
Recent U.S. and international studies to follow.
DOW CORNING: RECENT U.S. AND INTERNATIONAL STUDIES
OF BREAST IMPLANTS PATIENTS USING ACCEPTED SCIENTIFIC PROCEDURES
The following is a summary of some recent studies of women with breast
implants conducted by prominent researchers at prestigious institutions.
Unlike the reports of individual patients (often called "case reports" or
"case series") which you may have read about, these studies were designed to
make comparisons between groups of women with and without implants. The
latter are called control groups and provide the opportunity to determine
whether a finding among those with implants is occurring more frequently than
might be expected.
Brigham and Women's Hospital, Harvard Medical School, Sanchez- Guerrero,
Karlson, Colditz, et. al., Boston, MA 1994
"Silicone Breast Implants and Connective Tissue Disease"
This study examined the incidence of rheumatic disease among 121,700
American registered nurses from 1976-1990. The use of breast implants among
those with rheumatic disease (disease confirmed by medical records) was
compared to use in a randomly selected age matched control group. The authors
concluded "We found no association between silicone breast implants and
connective tissue disease."
** Mayo Clinic, S. E. Gabriel, M.D., L. T. Kurland, M.D., et. al.,
Rochester, MN 1994
"Breast Implants/Connective Tissues Disease Disorders"
This study looked at medical records for all women in Olmsted County,
Minnesota who received breast implants between 1964 and 1991, identified 749
women who had received breast implants and compared them with 1,498 women who
had not received implants. The investigators stated: "We found no
association between breast implants and the connective-tissue diseases and
other disorders that were studied."
* University of Michigan School of Public Health, David Schottenfeld, M.D.,
et. al., Ann Arbor, MI 1994
"Scleroderma and its Causes"
Large-scale population based case-control study looking at all women in the
state of Michigan diagnosed with scleroderma between 1980 and 1991. The study
involved 337 women with scleroderma (83% of those diagnosed) and 1,184 women
in a control group who did not have scleroderma. Researchers found "no
statistically significant association between silicone breast implants and
scleroderma" and "no association between any contact with silicone and
scleroderma."
Johns Hopkins Medical Institutions, F. M. Wigley, M.D., et. al., Baltimore,
MD 1992
"Breast Implants/Scleroderma"
This is part of the Hochberg study conducted at the University of Maryland
School of Medicine noted below. Among 210 Baltimore respondents and 531 from
Pittsburgh with scleroderma, the frequency of breast implants was about the
same as that estimated for the U.S. adult female population. The
investigators concluded that "these data fail to support the hypothesis that
augmentation mammoplasty with silicone gel- filled prosthesis is a risk factor
for the development of SSc (scleroderma)."
M.D. Anderson Cancer Center, Mark Schusterman, M.D., et. al., Houston, TX
July 1993
"Breast Implants/Autoimmune Disease"
Results from this prospective study of 603 patients (250 with breast
implants and 353 with reconstruction from their own tissue) from the M.D.
Anderson Cancer Center in Houston showed "The incidence of autoimmune disease
in mastectomy patients receiving silicone gel implants is not different than
in patients who had reconstruction with autogenous tissue."
** University of Maryland School of Medicine, M. C. Hochberg, M.D., et. al.,
Baltimore, MD 1993
"Breast Implants/Scleroderma"
This is a large multi-center case control study of scleroderma which will
enroll approximately 1,000 cases of scleroderma and 2,000 community controls.
The cases are being compiled by researchers from the University of Pittsburgh,
Johns Hopkins University and the University of California San Diego and
compared with population based controls. Preliminary results state "These
preliminary data fail to demonstrate an association between augmentation
mammoplasty (with silicone breast implants) and the development of SSc
(scleroderma)."
* Emory University, John A. Goldman, M.D., et. al., Atlanta, GA 1992
"Silicone Breast Implants/Connective Tissue Disease"
A study of 4,289 women with and without breast implants found "no excess
risk of any CTD (connective tissue disease) among the breast implant
recipients. Among patients seeking a rheumatologicalconsultation, those with
a history of breast implants were no more likely to have diagnostic
considerations of a connective tissue disease, whether the analysis was
matched or unmatched."
University of Alabama at Birmingham, Department of Medicine, Warren D.
Blackburn, Jr., M.D., et. al., Birmingham, AL 1992
"Breast Implants/Rheumatic Disorder"
This was a study of 30 women with implants and a variety of symptoms. Each
was clinically examined and laboratory results were compared to normal
controls. They concluded "that most 'symptomatic' women with breast implants
have no evidence of a systemic inflammatory rheumatic disorder."
University of Alabama at Birmingham, Division of Clinical Immunology and
Rheumatology, Michael P. Everson, Ph.D., Birmingham, AL 1993
"Breast Implants/Immunological Symptoms"
This study looked at groups of symptomatic implant patients from 29 to 43 in
size, compared with control groups of normal women (10 to 68 in size) and also
compared with patients without implants who had chronic inflammatory
connective tissue disease (up to 131 in number). They compared the levels of
various indicators of inflammatory connective tissue disease between the
groups. They found that silicone breast implant patients had normal values
and concluded that their results "argue against an association of chronic
inflammatory disease (with) silicone breast implants."
Fred Hutchinson Cancer Research Center, Division of Clinical Research, Carin
E. Dugowson, M.D., et. al., Seattle, WA 1992
"Silicone Breast Implants/Rheumatoid Arthritis"
A prospective population based case control study of 349 women with
rheumatoid arthritis and 1,456 similarly aged control women showed "these data
do not support an increased risk for rheumatoid arthritis among women with
silicone breast implants."
University of Nevada School of Medicine, Barry S. Markman, M.D., et. al.,
Las Vegas, NV 1993
"Silicone Injections/Autoimmune Disease"
This was a study of 44 women who had received silicone injections between
the years 1965-1969. Based on a questionnaire, physical exam and
immunological tests, the study concluded "there is no higher incidence of
autoimmune disease than the general population."
University of Texas, Department of Surgery, Southwestern Medical Center,
Fritz E. Barton, Jr., M.D., et. al., Dallas, TX 1993
"Silicone Breast Implant Augmentation Patients/Autoimmune Disease"
This study of 40 women who either had polyurethane coated or smooth surface
silicone implants included periodic clinical examinations and laboratory tests
over a period of two years. The control group comprised 14 women who had
breast surgery but no implants. The findings "failed to disclose any
significant differences between the augmented patients ... and/or the
controls." Studies "fail to support a relationship between augmentation
mammoplasty and autoimmune disease."
INTERNATIONAL
St. Vincent Hospital, Department of Medicine, and Royal North Shore
Hospital, Rheumatology Unit, Helen J. Englert, M.D., and Peter Brooks, M.D.,
Sydney, Australia 1994
"Silicone Breast Implantation/Scleroderma"
This was a case control study of 464 women with scleroderma and 289 controls
in the Sydney, Australia area. They concluded "this study failed to
demonstrate an association between silicone breast implantation and the
subsequent development of scleroderma."
University of Toronto, The Wellesley Hospital, and Women's College Hospital,
Edward Keystone, M.D., et. al., Toronto, Canada
"Silicone Breast Implants/Autoantibody Levels/Connective Tissue Disease"
A study of 200 patients with silicone gel implants compared with a similar
group of 100 age-matched control patients without breast implants and 29
patients with implant rupture. Conclusion: "There were no significant
differences between the frequency or titre of any of these autoantibody levels
in each of the three groups of patients. These studies strengthen the concept
that there is no conclusive evidence that silicone-gel implants are related to
development of connective tissue disorders."
University of Toronto, Department of Surgery, Walter J. Peters, M.D., et.
al., Toronto, Canada 1993
"Silicone Breast Implants/Connective Tissue Disease"
All 350 patients in the Toronto Rheumatic Disease Clinic with scleroderma
were reviewed. Two had breast implants but "both had signs and symptoms of
the disease before receiving their implants." Extensive studies were also
performed on 455 consecutive patients with silicone gel implants. They
concluded that "the present studies do not strengthen a direct relationship
between CTD (connective tissue disease) and silicone gel implants. The
prevalence of CTS (SIC -- we believe this is a typographical error and should
be CTD, not CTS) in these patients appears to be similar to that of a control
female population without breast implants."
Molinette Hospital, Rheumatology Department, S. Di Vittorio, Oncological
Gynecology University, P. Sismondi, Plastic Surgery Traumatological Center, S.
Teich Alasia, et. al., Turin, Italy 1993
"Breast Implants/Immune Phenomenon"
A study of rheumatic/immune phenomenon in 102 mastectomy patients with
implants and 102 mastectomy patients without implants concluded "The
percentage of this type of disease (rheumatoid arthritis and scleroderma) was
found to be superimposable in the two groups and was no greater than that
found in the normal population."
LMU-Munchen, Klinikum Grobhadern, F. W. von Hessler, et. al., Munchen,
Germany 1993
"Breast Implants/Rheumatic Disease"
A retrospective field study of all 682 patients who had received silicone
gel breast implants between 1984 and 1991, compared to a control group of
patients who were scheduled to receive implants. Study included a
questionnaire and clinical examination and various laboratory tests on all
patients with complaints. They reported that "so far there is no evidence of
severe side effects after the use of silicone gel breast implants."
Technische University, Klinikum rechts der isar, Division of Plastic and
Reconstructive Surgery, A. M. Feller and K. Biefel, Munich, Germany 1993
"Breast Implants/Connective Tissue Disease"
A retrospective study of 500 patients with silicone breast implants who were
evaluated for any reactions connected with their implants. Study included a
questionnaire for all women and physical examination of 310 women. Results
showed "In none of the patients a casual relationship between the implantation
and the development of connective tissue disease was evident."
Danish Cancer Registry and U.S. National Cancer Institute, McLaughlin,
Fraumeni, Olsen and Mellemkjaer, Copenhagen and Bethesda, MD 1994
"Breast Implants/Systemic Sclerosis/Breast Cancer"
This study of 824 Danish women who had breast implants found a lower than
expected number of women with breast cancer -- 8 compared with the 13.6
expected. The study identified two women with systemic sclerosis which was
greater than the expected number of 0.07. The authors commented that the
results should be interpreted cautiously.
St. John's Hospital, Howden, Livingston, Watson, Edinburgh, Scotland 1994
"Silicone Breast Implants/Breast Cancer/Connective Tissue Disease"
This study looked at all the women of southeast Scotland who had silicone
gel breast implants between the years of 1982-1991. There were 319 women with
silicone gel breast implants who took part in the study and were compared to
carefully matched women without breast implants. The study concluded "None of
the patients was found to have an increased risk of developing cancer or
connective tissue diseases compared with the control group of women without
implants."
* Directly funded by Dow Corning
** Funded in whole or in part by the Plastic Surgeon Education Foundation.
Dow Corning has contributed money to this Foundation, but has no input on what
research the Foundation chooses to fund.
/CONTACT: T. Michael Jackson, 517-496-6443, or Christy A. Meter,
517-496-8841, both of Dow Corning/