U.S. Bankruptcy Court approves Dana Corporation's plan of reorganization

A U.S. Bankruptcy Court judge has signed an order confirming the Dana Corporation's Plan of Reorganization, paving the way for the company to exit Chapter 11 reorganization in January 2008. The company — a global supplier of axles; driveshafts; and structural, sealing, and thermal-management products as well as genuine service parts — announced that it will emerge from bankruptcy after the closing of its $2.0 billion exit financing facility and satisfaction of other customary closing conditions.

"This is a significant milestone for Dana and all of its constituents," says Dana Chairman and CEO Mike Burns. "The approved plan provides a solid foundation for the new Dana. We now look forward to emerging as a focused, solvent company that is positioned to take advantage of its considerable strengths and compete successfully in its global markets."

Dana entered Chapter 11 reorganization on March 3, 2006. During the ensuing 21 months, the company and its constituents identified, agreed upon and won court approval for approximately $440 million to $475 million in annual cost savings and revenue improvement. These annual savings were derived primarily from enhancing its product profitability, optimizing its manufacturing footprint, reducing labor costs and benefit changes, eliminating ongoing obligations for retiree health and welfare costs and achieving further reductions in administrative expenses.

"From the outset of this process, we said that fundamental —not incremental — change was critical to Dana's future success," Burns adds. "I am pleased to say that we have achieved this goal due in large part to the enormous efforts of our resilient employees around the world and the talented team of advisers who have helped bring us to this point. Similarly, we are grateful for the support and partnership demonstrated by many other constituents involved in this very complex process, including our customers, suppliers and members of the communities in which Dana people live and work."

For more information about the Dana Corporation, visit the company's Web site.