Company Continues To Make Progress in Reorganization Case
TOLEDO, Ohio, March 29 /PRNewswire-FirstCall/ -- Dana Corporation
(OTC Bulletin Board: DCNAQ) today announced that it has received final court
approval for the full amount of its $1.45 billion debtor-in-possession (DIP)
financing to help support its ongoing operations. The DIP credit facility is
being provided by a group of banks led by CitiCorp North America, Inc., Bank
of America, N.A., and JPMorgan Chase Bank, N.A.
(Logo: http://www.newscom.com/cgi-bin/prnh/19990903/DANA )
The full facility consists of a $750 million revolving credit facility and
a $700 million term loan. The term of the DIP facility was extended to 24
months from the date of its bankruptcy court filing, providing the company
with additional flexibility.
Dana Chairman and Chief Executive Officer Mike Burns said, "We are pleased
to have the full financing facility available as we proceed with the company's
reorganization. This financing, combined with existing cash flow from
operations, provides added assurance to our suppliers, employees, and
customers that we will continue to meet our post-filing obligations to them.
With a stable financial footing, we can focus our energies on executing our
plans to improve operations, strengthen performance, and achieve a sustained
turnaround at Dana."
Dana also received court approval for a number of other motions that will
help advance the company's reorganization. The relief Dana sought was
uniformly granted and included:
- Rejecting certain leases at unused properties;
- Retaining various professionals and continuing the company's cash
management system;
- Establishing procedures for small asset sales;
- Requiring a repudiating supplier to return payments improperly obtained
from Dana; and
- Ensuring uninterrupted utility service.
More information about Dana's reorganization case is available at
http://www.dana.com/reorganization. The case has been assigned to the
Honorable Judge Burton R. Lifland of the U.S. Bankruptcy Court for the
Southern District of New York. The case number is 06-10354.
About Dana Corporation
Based in Toledo, Ohio, Dana Corporation is a leading supplier of axle,
driveshaft, engine, frame, chassis, and transmission technologies. Dana
people design and manufacture products for every major vehicle producer in the
world -- in the automotive, commercial vehicle, and off-highway markets. The
company and certain of its U.S. subsidiaries are operating under Chapter 11 of
the U.S. Bankruptcy Code as debtors-in-possession. More information about
Dana can be found on the Internet at http://www.dana.com.
Forward-Looking Statements
Statements in this release that are not entirely historical constitute
"forward-looking" statements within the meaning of the Private Securities
Litigation Reform Act of 1995. These statements represent Dana's expectations
based on our current information and assumptions. However, forward-looking
statements are inherently subject to risks and uncertainties. Dana's actual
results could differ materially from those expressed or implied in such
statements due to a number of factors, including our ability to continue as a
going concern, operate pursuant to the terms of the debtor- in-possession
(DIP) facility, obtain court approval with respect to further motions in the
Chapter 11 proceeding from time to time, and develop and implement a plan of
reorganization under Chapter 11, and other risk factors set out in our public
filings with the Securities and Exchange Commission. Forward-looking
statements in this release speak only as of the date of the release. Dana does
not undertake to update such forward-looking statements.
SOURCE Dana Corporation
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Related links:
http://www.dana.com
http://www.dana.com/reorganization
Photo Notes:http://www.newscom.com/cgi-bin/prnh/19990903/DANA
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, photodesk@prnewswire.com
Company News On-Call:
http://www.prnewswire.com/comp/226839.html
CONTACT:
Chuck Hartlage of Dana Corporation,
+1-419-535-4728, or chuck.hartlage@dana.com
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