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Dana's ad hoc committee wants court to deny $2 million settlements with certain asbestos injury claimants
By Reshmi Basu
New York. Nov. 8 - Dana Corp.'s ad hoc committee of asbestos personal injury claimants asked the court to deny the company's $2 million of settlement agreements with certain asbestos injury plaintiffs until the committee has reviewed the proposed deal, according to a Thursday filing with the U.S. Bankruptcy Court for the Southern District of New York.
According to the objection, the ad hoc committee has not received actual copies of the agreements, and, therefore, cannot evaluate whether the settlements are unfair to those claimants who have not settled with the company prior to the confirmation of its plan of reorganization.
As previously reported, Dana has been named a defendant in a large number of lawsuits related to the sale of certain automotive gaskets containing asbestos and the alleged exposure to those gaskets.
The $2 million settlement would resolve claims that were filed through March 2, 2006, the day before the company's bankruptcy filing.
The committee argued that if the settlements are approved, there will be two subclasses of claims under the same class: the claims that were resolved before Dana's confirmation and the claims that were resolved in the ordinary court of business.
"Such disparate treatment of claims in the same class is improper," the committee said in the court document.
A hearing on approval of the settlements is scheduled for Nov. 15.
Dana, a Toledo, Ohio-based supplier of components, modules and systems to vehicle manufacturers and related aftermarkets, filed for bankruptcy on March 3, 2006. Its Chapter 11 case number is 06-10354.
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