DOW CORNING ANNOUNCES SPECIAL CHARGE
MIDLAND, Mich.-- July 18, 1995--Dow Corning
Corp. today announced a special charge of $351.1 million ($221.2 million after
tax) to reflect a change in the company's accounting method for its
contribution to a breast implant global settlement. The charge will
reduce second-quarter net income.
In December 1993, the special charge taken by the company for a
global settlement contribution over 30 years and related insurance
recoveries was recorded on a present value, or discounted, basis.
These amounts are now recorded at undiscounted values and reflect
the entire $2 billion the company agreed to contribute to a global
settlement offset by $1.2 billion in expected insurance recoveries.
"We needed to make this adjustment because of the uncertainties
arising from our May 15, 1995, filing for protection under Chapter
11 of the U.S. Bankruptcy Code," said John W. Churchfield, vice
president for planning and finance and chief financial officer.
"The Chapter 11 filing, has introduced enough uncertainty into the
situation that the amount and timing of settlement payments can no
longer be reliably determined as required by accounting rules, so we
abandoned the present- value treatment. This action represents an
accounting entry and has no impact on Dow Corning's cash position or
the underlying value and financial strength of the company."
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.
/CONTACT: Scott Seeburger, 517-496-4078, or Barbara J. Muessig,
517-496-8841, both of Dow Corning/
(DOW GLW)
COLUMBIA GAS SYSTEM REACHES AGREEMENT IN PRINCIPLE IN SECURITIES
LAWS CLASS ACTION LAWSUITS
WILMINGTON, Del.,--July 18, 1995--The
Columbia Gas System, Inc. (NYSE: CG) today announced it has reached an agreement
in principle resolving the class action lawsuits alleging securities
laws violations that were filed in the U.S. District Court in
Delaware following the Corporation's June 1991 announcement of a
major charge against earnings and suspension of its common stock
dividend.
The lawsuits were filed against the Corporation, its independent
public accountants, the underwriters for the Corporation's 1990
common stock offering, and certain officers and directors of the
Corporation and Columbia Gas Transmission Corporation by various
security holders on behalf of a purported class of all such security
holders.
Columbia's portion of the proposed $36.5 million settlement
would be approximately $16.5 million. The remainder would be shared
among the insurance carrier for the directors and officer defendants
and the other defendants to the litigation.
New Columbia System Chairman and CEO Oliver G. Richard III said,
"Columbia is not admitting any wrongdoing or liability and primarily
agreed to the proposed settlement to avoid costly and time-consuming
litigation and to facilitate its Chapter 11 reorganization process."
The settlement would be subject to approval by the U.S. District
Court in Delaware. It is also conditioned upon confirmation of the
Corporation's amended Chapter 11 reorganization plan by the U.S.
Bankruptcy Court for the District of Delaware. The settlement would
be implemented following the confirmation of the Corporation's
reorganization plan.
The Columbia Gas System, Inc. is one of the nation's largest
natural gas holding companies. Subsidiary companies are engaged in
the exploration, production, purchase, storage, transmission and
distribution of natural gas as well as other energy operations. The
parent company and its principal pipeline subsidiary have been
operating as debtors-in-possession under Chapter 11 of the
Bankruptcy Code since July 31, 1991.
/CONTACT: Media, W.R. McLaughlin, 302-429-5443, or H.W. Chaddock,
302-429-5261, or Analysts, T.L. Hughes, 302-429-5363, or K.P.
Murphy,
302-429-5471, all of Columbia Gas/
(CG)
BURLINGTON CONFIRMS PLAID CLOTHING GROUP, INC. CREDIT LOSS
GREENSBORO, N.C.,--July 18, 1995--Burlington Industries,
Inc. (NYSE: BUR) today reported that it is a major creditor of HREF="chap11.plaid.html">Plaid Clothing Group Inc. which yesterday sought
protection under Chapter 11 of the U.S. Bankruptcy Code.
Burlington confirmed that the credit loss will impact June
quarter operating results by approximately $.05 to $.06 per share.
The ultimate impact will depend upon recoveries, if any, which
result from Plaid's reorganization proceeding.
George Henderson, Burlington president and chief executive
officer, commented: "We expect our June quarter operating results
to be within the range of estimates of financial analysts, even with
this development."
Burlington Industries, Inc. is one of the largest and most
diversified manufacturers of textile products in the world.
/CONTACT: (Press) Tom Daly of Kekst & Co., 212-593-2655, or Bryant
Haskins of Burlington, 919-379-2512, or (Analysts) Jim Clippard of
Burlington, 919-379-2727/
(BUR)