Court Approves Dana Deal With USW and UAW

Judge Burton R. Lifland of the U.S. Bankruptcy Court for the Southern District of New York today granted approval of the settlement agreements between Dana Corporation and each of the United Steel Workers (USW) and the United Auto Workers (UAW), as well as an investment agreement with Centerbridge Capital Partners, L.P., for a major investment in the company.
The judge also approved a plan support agreement with the USW, the UAW, and Centerbridge, under which these parties will support a plan of reorganization filed by Dana that includes both the labor settlements and the Centerbridge investment agreement.
“We are pleased with the Court’s approval of these agreements, which we believe preserves significant value for all of our constituents,” said Dana Chairman and CEO Mike Burns.
“Today’s developments support Dana’s long-term success and keep our company on the path to file our reorganization plan by the beginning of September and to emerge from bankruptcy by year end as a competitive and sustainable business.”
Dana is involved in the supply of axles; driveshafts; and structural, sealing, and thermal management products; as well as genuine service parts.
The company’s customer base includes virtually every major vehicle and engine manufacturer in the global automotive, commercial vehicle, and off-highway markets, which collectively produce more than 65 million vehicles annually.
Based in Toledo, Ohio, the company’s continuing operations employ approximately 35,000 people in 28 countries and reported 2006 sales of $8.5 billion, with more than half of this revenue derived from outside the United States.