Dow Corning’s 24-Year Bankruptcy Nears End on $172 Million Deal

The company formerly known as Dow Corning Corp. asked a judge to close its 24-year-old bankruptcy case after agreeing to pay $172 million to lenders to settle a dispute over interest owed.

A group of six banks—including Bank of America Corp., Credit Lyonnais S.A. and Bank of New York—claimed it’s owed more than $342 million for loan interest accrued, based on a default rate, since Dow’s Chapter 11 filing in 1995. The banks agreed to compromise their claim after a mediation earlier this year.

Dow Silicones Corp., now a subsidiary of Dow Inc., also resolved a dispute with another group ...