TOLEDO, Ohio, Dec. 26 /PRNewswire-FirstCall/ -- Dana Corporation (OTC
Bulletin Board: DCNAQ) announced today that Judge Burton R. Lifland of the
U.S. Bankruptcy Court for the Southern District of New York has signed an
order confirming the company's Plan of Reorganization. The action paves the
way for Dana's emergence from Chapter 11 reorganization, which it expects
to occur in January 2008, after the closing of the company's $2.0 billion
exit financing facility and satisfaction of other customary closing
conditions.
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"This is a significant milestone for Dana and all of its constituents,"
said Dana 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 reorganization on March 3, 2006. During the
ensuing 21 months, the company and its constituents identified, agreed
upon, and won court approval for approximately $440 million to $475 million
in annual cost savings and revenue improvement. These annual savings were
derived primarily from enhancing its product profitability, optimizing its
manufacturing footprint, reducing labor 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 said.
"I am pleased to say that we have achieved this goal due in large part to
the enormous efforts of our resilient employees around the world and the
talented team of advisers who have helped bring us to this point.
Similarly, we are grateful for the support and partnership demonstrated by
many other constituents involved in this very complex process, including
our customers, suppliers, and members of the communities in which Dana
people live and work."
About Dana 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/ .
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
and projections are subject to uncertainties relating to the successful
emergence of the company from bankruptcy and consummation of the financing
transactions contemplated by its exit financing commitments, and a number
of other risks, uncertainties and assumptions (including, but not limited
to, the debtors' operations and business environment, the effects of the
debtors' Chapter 11 reorganization and the conduct, outcome, and costs of
the Chapter 11 cases), which are difficult to predict and which are, in
many cases, beyond the debtors' control. In light of these risks and
uncertainties, the events and circumstances described in the
forward-looking statements and projections in the news release may not
occur and the debtors' actual financial results could differ materially
from those expressed or implied in such forward-looking statements and
projections. Dana does not undertake to publicly update or revise any
forward-looking statements or projections contained in the news release,
whether as a result of new information, future events, or otherwise.
SOURCE Dana Corporation
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