TOLEDO, Ohio, Jan. 4 /PRNewswire-FirstCall/ -- Dana Corporation (OTC
Bulletin Board: DCNAQ) announced today that in support of its ongoing
reorganization and anticipated emergence from Chapter 11 bankruptcy
protection later this year, the company has filed a motion in the U.S.
Bankruptcy Court for the Southern District of New York, which has
jurisdiction over its Chapter 11 bankruptcy proceedings under the caption
In re Dana Corporation, et al., Case No. 06-10354 (BRL), seeking to amend
its $1.45 billion debtor-in- possession (DIP) credit agreement. The motion
is scheduled to be heard by the court on Jan. 24, 2007.
(Logo: http://www.newscom.com/cgi-bin/prnh/19990903/DANA)
Among other things, Dana intends to reduce the amount of its unused
revolving credit facility under the DIP credit agreement to correspond with
changes in its borrowing base. As it continues to sell its non-core assets,
these changes will adjust the structure of Dana's debt facilities to more
closely align with the needs of the business. In order to ensure that Dana
continues to have adequate liquidity notwithstanding such reduction, Dana
is seeking court approval for an increase in the amount available under its
term loan facility from $700 million to $900 million, as well as for
certain financial covenant modifications and technical changes to its DIP
credit agreement. Citigroup Corporate and Investment Banking, the
administrative agent for the lenders under the DIP credit agreement, has
agreed to underwrite the proposed increase in the term loan facility.
"While we are pleased with the restructuring progress that Dana has
achieved over the past nine months, especially under challenging market
conditions, the additional funding and financing flexibility that will
result from the proposed amendment position us to complete our
restructuring and emerge from Chapter 11," said Dana Chairman and CEO Mike
Burns. "We are also pleased with the confidence that our DIP agent,
Citigroup, has demonstrated in our reorganization efforts by underwriting
the proposed increase to our DIP facility."
About Dana Corporation
Dana is a leading supplier of drivetrain, chassis, structural, and
engine technologies. Dana people design and manufacture products for every
major vehicle and engine producer in the world. Based in Toledo, Ohio, with
operations throughout the world, Dana is focused on being an essential
partner to automotive, commercial, and off-highway vehicle customers, which
collectively produce more than 60 million vehicles annually. The company's
continuing operations reported sales of $8.6 billion in 2005. Dana's
Internet address is: http://www.dana.com/.
Dana and certain of its U.S. subsidiaries are operating under Chapter
11 of the U.S. Bankruptcy Code as debtors in possession. Information about
the bankruptcy proceedings can be found at:
http://www.dana.com/reorganization. While Dana continues its reorganization
under Chapter 11, investments in its securities are highly speculative.
Although shares of Dana common stock continue to trade on the OTC Bulletin
Board (OTCBB) under the symbol "DCNAQ," the trading prices of the shares
may have little or no relationship to the actual recovery, if any, by the
holders under any eventual court-approved reorganization plan. The
opportunity for any recovery by holders of Dana common stock under such
reorganization plan is uncertain and shares of Dana common stock may be
cancelled without any compensation pursuant to such plan.
Forward-Looking Statements
Statements in this release regarding Dana's intention to reduce the
amount of its unused revolving credit facility under the DIP credit
agreement constitute "forward-looking" statements within the meaning of the
Private Securities Litigation Reform Act of 1995. These statements
represent Dana's expectations based on its current information and
assumptions, but there can be no assurance that the contemplated reductions
will occur. Dana does not undertake to update any forward-looking
statements in this release.
SOURCE Dana Corporation
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http://www.dana.com
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CONTACT:
Chuck Hartlage of Dana, +1-419-535-4728, or
chuck.hartlage@dana.com
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