Dana qualifies $1.3 billion unsecured noteholders to participate in series B preferred stock offering

By Caroline Salls

Pittsburgh, Aug. 16 - Dana Corp. said holders of $1.3 billion of its $1.6 billion in unsecured notes are eligible to purchase series B convertible preferred shares in reorganized Dana under its plan investment agreement, according to an 8-K filed with the Securities and Exchange Commission.

As previously reported, under the investment agreement, Centerbridge Capital Partners, LP will purchase $250 million in series A convertible preferred shares of reorganized Dana and the qualified creditors can buy $500 million in series B convertible preferred shares.

According to the 8-K, the record date for determining which bondholders qualified to participate in the series B preferred stock offering was Aug. 13.

Interested bondholders were required to sign off on the company's plan of reorganization support agreement to qualify for the offering.

Dana said the $300 million of non-qualified bonds are likely to trade at different prices than the qualified bonds.

Dana, a Toledo, Ohio-based supplier of components, modules and systems to vehicle manufacturers and related aftermarkets, filed for bankruptcy on March 3, 2006 in the U.S. Bankruptcy Court for the Southern District of New York. Its Chapter 11 case number is 06-10354.

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