Fw: Updated TCC site ... 2/1/02

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----- Original Message -----

From: " Ilena Rose " <ilena@...>

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Sent: Friday, February 01, 2002 12:23 PM

Subject: Updated TCC site ... 2/1/02

> ~~~ Thanks for the heads up ~~~

>

> http://www.tortcomm.org/

>

> Welcome to the Tort Claimants Committee website, last updated on February

> 1, 2002.

>

> Current Events

>

> Updated February 1, 2002:

>

> The 6th Circuit Court of Appeals issued an opinion on January 29, 2002

> affirming (approving) the Amended Joint Plan of Reorganization of Dow

> Corning. To read a copy of the opinion, click here.

>

> The first issue on appeal was whether a bankruptcy court may enjoin

> (prevent) objectors from suing a non-debtor corporation (i.e., Dow

> Corning's shareholders -- Dow Chemical and Corning) as part of a

> reorganization plan in bankruptcy. The 6th Circuit Court of Appeals ruled

> that the bankruptcy court may do so, and they affirmed (approved) the

> earlier rulings of the bankruptcy and district courts. However, they sent

> the case back to the lower court for findings of facts that demonstrate

> that an injunction was appropriate in this reorganization plan. This means

> that the district court must issue an order that specifically lists the

> facts that support her earlier finding that objectors cannot sue a

> non-debtor (i.e., Dow Chemical and Corning).

> As part of this decision, the appeals court found that the reorganization

> plan did not provide adequate protection to ensure that the claims of the

> U.S. Government (Class 15) would be paid in full. Specifically, they

> determined that a procedural mechanism was needed to allow the U.S.

> Government to assert claims for subrogation under Medicare and other

> federal programs.

>

> The second issue on appeal was whether the reorganization plan classified

> foreign claimants appropriately. The court ruled that the plan did treat

> foreign claimants appropriately and equally with non-foreign claimants

> under the bankruptcy code, and affirmed (approved) the earlier rulings of

> the bankruptcy and district courts.

> The Tort Claimants' Committee will post additional information on the

> ruling and other developments as they become available. In the meantime,

> Dow Corning has paid the Initial Payment of approximately $1 billion to

> the claimants' trust. This money is being invested by the Interim

> Financial Advisor and is earning interest dedicated solely for claimants.

> Dow Corning does not get any of the interest earned by the claimants'

> trust. The Settlement Facility offices are also operational, and a Claims

> Assistance Program is available to answer your questions (call toll free

> within the U.S. and Canada to 1-866-874-6099). While the ruling by the 6th

> Circuit Court of Appeals will undoubtedly cause additional, unexpected

> delay in making payments to claimants, the Tort Claimants' Committee will

> continue to urge the courts to expedite the appeals and rule quickly.

> Unfortunately, we do not control the timing of the court system.

> Please continue to check back to the TCC website for updates.

>

> On October 23rd, the 6th Circuit Court of Appeals in Cincinnati, Ohio

> heard arguments from the parties regarding the appeals filed that

> challenge the settlement plan. The court has not yet ruled on the appeals.

> We do not know when the court will issue an order ruling on the pending

> appeals. As soon as we learn anything, we will post an update on the TCC

> website.

>

> On December 11, 2001, Judge Hood issued an order approving the claim form

> packages prepared by the Settlement Facility. This means that the

> Settlement Facility may go forward with printing and preparing the claim

> forms for mailing and with translating the claim forms and information

> about the settlement into various languages for claimants in Classes 6.1,

> 6.2, 10.1 and 10.2. The court has not yet set a date when the claim forms

> will be mailed. When we learn anything about the mailing date, we will

> post an update on the TCC website.

>

> On December 13, 2001, Judge Spector - who has been the judge presiding

> over the Dow Corning bankruptcy since it was filed in 1995 - recently

> entered an order " recusing " himself from hearing anything further about

> this case. This means that he will no longer be involved in the Dow

> Corning bankruptcy case. To read a copy of this order click here

>

> On December 17, 2001, Judge Page Hood - the federal district judge

> in Michigan who oversaw the bankruptcy proceedings - entered an order

> " withdrawing the reference " in the Dow Corning case. She entered this

> order because Judge Spector will no longer be available to hear any

> matters in the case based on his December 13th order. Her December 17th

> order means that Judge Hood will now hear all matters concerning the

> bankruptcy case directly. (Before, Judge Spector would first hear matters

> and issue a ruling and then Judge Hood would hear any appeals on orders

> entered by Judge Spector. Now, the parties can go directly to Judge Hood

> with issues and have them heard first by her.)

>

>