A US bankruptcy court judge has signed an order confirming Dana’s plan of reorganisation which, the supplier said, paves the way for its emergence from Chapter 11 reorganisation, expected this month after the closing of the company’s $US2bn exit financing facility and the meeting of other conditions.
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“This is a significant milestone for Dana and all of its constituents,” said 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 bankruptcy reorganisation on 3 March, 2006. It subsequently won court approval for approximately $440 to $475m in annual cost savings and revenue improvement, primarily from enhancing its product profitability, optimising its manufacturing footprint, reducing labour 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 added.
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