Sixth Circuit Nixes Dow Corning Creditors' Interest Rate

Law360, New York (July 27, 2006, 12:00 AM EDT) -- Bankruptcy creditors of Dow Corning Corp. may be entitled to a higher rate of interest on the roughly $1 billion in debt they hold, according to a Sixth Circuit Court of Appeals ruling on Wednesday.

The court threw out a lower court ruling that granted creditors an interest rate at the federal judgment rate of 6.28%, compounded annually, and remanded the case to the United States District Court for the Eastern District of Michigan for a new ruling.

The Sixth Circuit ruled that the lower court...
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