- Mike Burns Elects to Leave Company Following Successful Emergence
- John Devine Elected Executive Chairman and Acting CEO
- Common Stock of New Company Begins Trading on NYSE
TOLEDO, Ohio, Feb. 1 /PRNewswire-FirstCall/ -- Dana Holding Corporation
(NYSE: DAN) is today emerging from Chapter 11 reorganization as a new
company positioned to compete vigorously in the global automotive,
commercial vehicle, and off-highway markets.
(Logo: http://www.newscom.com/cgi-bin/prnh/19990903/DANA )
Dana's U.S. operations entered Chapter 11 on March 3, 2006. During a
comprehensive, 23-month reorganization, the company and its stakeholders
achieved $440 million to $475 million in annual cost savings and revenue
improvements. These annual savings were achieved primarily from
improvements in its manufacturing footprint, reducing labor costs and
benefit changes, working with labor and retiree groups to create VEBA
trusts to assume ongoing obligations for retiree health and welfare costs,
and further reductions in administrative expenses.
"Fundamental change has been our objective from the outset of this
process," said Mike Burns. "We have achieved this goal through the
persistence and dedication of our employees around the world, the
partnerships with our labor unions, and the ongoing confidence and support
of our customers and suppliers.
Burns, who served as Dana's Chairman and CEO since 2004 and will remain
with the company for a transition period, added, "I am proud of our
emergence today and what the people of Dana have accomplished during the
restructuring process. Our actions were necessary for the future of the
company. And we achieved our goal while maintaining a strong focus on
taking care of our customers. This is the right time for a change, and I am
convinced that the company and its new leadership are poised for success."
New Board of Directors Elects John Devine Executive Chairman and Acting
CEO
In conjunction with emergence, Dana's new Board of Directors has
elected John Devine executive chairman and acting CEO. Devine is the former
vice chairman and chief financial officer of General Motors Corporation,
where he served from 2001 to mid-2006. Prior to joining GM, Devine served
as chairman and chief executive officer of Fluid Ventures, LLC. Previously,
he spent 32 years at Ford Motor Company, where he last served as executive
vice president and chief financial officer. Devine is also a board member
of Amerigon Incorporated.
"I'm pleased to join the Dana team, particularly on this important day
for our company and all of its stakeholders," said Devine. "The
reorganization achieved by Dana and its people has positioned us to emerge
as a more competitive company. We will be focused on the goal of returning
Dana to a leadership position in our industry."
$2 Billion Exit Financing Equips Company to Make Significant
Investments in Programs
Dana obtained $2.0 billion in exit financing through an effort led by
Citigroup Global Markets Inc., Lehman Brothers Inc., and Barclays Capital.
Despite difficult credit market conditions, the company was able to secure
exit financing. The financing consists of a $650 million asset-based
revolving credit facility and a $1,350 million term loan facility. Proceeds
from the facility will be used by Dana to repay its debtor-in-possession
credit facility, make other payments required upon exit from bankruptcy,
and provide liquidity to fund new product programs and other investments.
Common Stock of New Company Begins Trading on NYSE
Effective today, common stock in the new company will begin trading on
the New York Stock Exchange under the symbol DAN. Shares of Dana
Corporation common stock that had most recently traded over the counter
under the symbol DCNAQ have been cancelled and will no longer trade.
About Dana Holding Corporation
Dana is a world leader in the supply of axles; driveshafts; and
structural, sealing, and thermal-management products; as well as genuine
service parts. The company's customer base includes virtually every major
vehicle and engine manufacturer in the global automotive, commercial
vehicle, and off-highway markets, which collectively produce more than 70
million vehicles annually. Based in Toledo, Ohio, the company's continuing
operations employ approximately 35,000 people in 26 countries and reported
2006 sales of $8.5 billion, with more than half of this revenue derived
from outside the United States. For more information, please visit:
http://www.dana.com/.
Notice Regarding Forward-Looking Statements
Certain statements and projections contained in this news release are,
by their nature, forward-looking within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking statements
are based on our current expectations, estimates and projections about our
industry and business, management's beliefs, and certain assumptions made
by us, all of which are subject to change. Forward-looking statements can
often be identified by words such as "anticipates," "expects," "intends,"
"plans," "predicts," "believes," "seeks," "estimates," "may," "will,"
"should," "would," "could," "potential," "continue," "ongoing," similar
expressions, and variations or negatives of these words. These
forward-looking statements are not guarantees of future results and are
subject to risks, uncertainties and assumptions that could cause our actual
results to differ materially and adversely from those expressed in any
forward-looking statement. Dana's Annual Report on Form 10-K, subsequent
Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K, and
other Securities and Exchange Commission filings discuss important risk
factors that could affect our business, results of operations and financial
condition. The forward-looking statements in this news release speak only
as of this date. Dana does not undertake any obligation to revise or update
publicly any forward-looking statement for any reason.
SOURCE Dana Holding Corporation
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