The US Bankruptcy Court for the southern New York has approved agreements between Dana Corporation, the United Steel Workers (USW) and United Auto Workers (UAW) unions, as well as an investment agreement with Centerbridge Capital Partners for a major investment in the company.

The judge also approved a plan support agreement with the USW, the UAW, and Centerbridge, under which the parties will support the Dana reorganisation plans that includes both the labour settlements and the Centerbridge investment agreement.

Dana chairman and CEO Mike Burns said "[The] developments support Dana's long-term success and keep our company on the path to file our reorganisation plan by the beginning of September and to emerge from bankruptcy by year end as a competitive and sustainable business."