Dana granted eight-month exclusivity extension

By Caroline Salls

Pittsburgh, Dec. 19 - Dana Corp. obtained an eight-month extension to its exclusive periods to file a plan of reorganization and solicit votes on the plan, according to a Tuesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The company's exclusive plan filing period was extended to Sept. 3, 2007 from Jan. 3 and the solicitation period to Nov. 2, 2007 from March 5.

According to the motion, in addition to stabilizing its business and transitioning into Chapter 11, the company has performed an exhaustive analysis of all aspects of its business operations to identify restructuring initiatives which, if implemented, will form the basis of its reorganization plan and ultimately permit it to rehabilitate its U.S. operations by achieving viability on a sustained basis.

Now, the company said it is embarking on the negotiation and implementation phase of its restructuring, focusing on customers, retirees and workforce, with a primary objective of addressing the U.S. operations' current loss and cash burn situation in 2007.

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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