Dana Corporation Files Plan of Reorganization
Plan Positions Dana to Emerge From Chapter 11 with Strong Balance Sheet
Aug 31, 2007
TOLEDO, Ohio – August 31, 2007 – Dana Corporation (OTCBB: DCNAQ) announced today that the company and its debtor subsidiaries have submitted a proposed Plan of Reorganization and related Disclosure Statement to the United States Bankruptcy Court for the Southern District of New York.
The Plan of Reorganization outlines how Dana proposes to emerge from Chapter 11, including the proposed treatment of creditors and equity holders. The Plan contemplates an investment of up to $750 million in new convertible preferred stock in the reorganized Dana. The Disclosure Statement contains a discussion of the issues that led to the Chapter 11 filing, a description of the Plan provisions, and an analysis of the Plan’s feasibility. With this filing, Dana is one step closer to achieving its goal of emerging from Chapter 11 protection by the end of this year.
Dana Chairman and Chief Executive Officer Mike Burns said, “When we entered Chapter 11 in March 2006, we committed to fixing our business comprehensively – financially and operationally – and to implementing fundamental change, not simply incremental improvement. As detailed in our Disclosure Statement, Dana has made substantial progress in addressing our challenges and building a sustainable business that is well positioned to compete in a challenging global environment. We are on track to emerge as a stronger, financially stable company that is equipped to make significant investments in our programs and to continue providing innovative products of the highest quality to our customers worldwide.
“This has been a very difficult period for all of our constituencies, including our people – both current and retired – and our customers and suppliers,