More news on Dana's Bankruptcy - Pontiac GTO Forum
User Tag List

 
LinkBack Thread Tools Display Modes
post #1 of 1 (permalink) Old 03-06-2006, 02:10 PM Thread Starter
 
johnebgoode's Avatar
 
Join Date: Oct 2005
Location: Long Island
Posts: 910
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
More news on Dana's Bankruptcy

Updated:2006-03-06 14:53:28
Bankruptcy Judge Sets Orders To Keep Dana Corp. Running
Dow Jones
NEW YORK (AP)--Dana Corp. (DCN) can pay its utility bills and some taxes and fulfill orders the auto parts maker received from car manufacturers before it filed for bankruptcy protection last week, a New York judge said Monday.


Judge Burton Lifland, who is overseeing Dana's bankruptcy, said suppliers must honor contracts to keep the auto parts maker's plants open.


"Disruption is something that cascades up and down," in the auto industry, he said.


The U.S. operations of the Toledo, Ohio, auto-parts maker were the latest in a growing number of auto-parts suppliers to file for Chapter 11 bankruptcy protection because of a slumping domestic auto industry and rising energy costs that drove up costs of raw materials and hobbled demand for sport utility vehicles.


Dana supplies parts to General Motors Corp. (GM), Ford Motor Co. (F) and other automakers. The bankruptcy filing does not affect the company's businesses in Europe, South America, Asia, Mexico or Canada, the company said.


Dana, which sells brakes, axles and other parts to most major automakers, has faced increasing pressure from customers to offer products at lower prices. The company, with 46,000 workers worldwide, said in January it lost nearly $1.3 billion in the third quarter of last year while realigning its business.


Dana Chairman and Chief Executive Michael Burns testified on Monday that the entire auto industry relies on a very complex supply chain which, if disrupted, can be costly.


"When you do affect the customers they have a long memory. It costs them a lot of money," Burns said. "Our responsibility is to get them the proper product we agreed to on time."


Lifland also approved Dana's request to hire Miller Buckfire & Co., as its financial advisors and investment bankers, and legal firms Jones Day and Hunton & Williams.


The company said Monday it plans to have a meeting on Friday in New York with all its creditors to set up a creditors committee that would help manage it during its bankruptcy.


Earlier Monday, Dana said its chief financial officer Robert C. Richter has retired. Richter, also a vice president, will continue to be available to the company as a consultant, Burns said in a press release.

johnebgoode is offline  
Sponsored Links
Advertisement
 
Reply

  Pontiac GTO Forum > Off Topic Discussions > The Lounge

Quick Reply
Message:
Options

Register Now



In order to be able to post messages on the Pontiac GTO Forum forums, you must first register.
Please enter your desired user name, your email address and other required details in the form below.

User Name:
Password
Please enter a password for your user account. Note that passwords are case-sensitive.

Password:


Confirm Password:
Email Address
Please enter a valid email address for yourself.

Email Address:
OR

Log-in











Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Show Printable Version Show Printable Version
Email this Page Email this Page
Display Modes
Linear Mode Linear Mode



Posting Rules  
You may post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On

 
For the best viewing experience please update your browser to Google Chrome