March 7, 2006
Dana’s U.S. operations file for bankruptcy protection
Toledo, Ohio – Automotive parts supplier Dana has filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code. The company’s subsidiaries in Canada, Mexico, Europe, South America and Asia-Pacific are not included in the filing and are operating as normal.
To fund its continuing operations during the restructuring, Dana has secured a US$1.45 billion debtor-in-possession (DIP) financing facility. Subject to court approval, the DIP credit facility will be used for the company’s normal working capital requirements, including employee wages and benefits, supplier payments and other operating expenses during the reorganization process.
The company states that it has faced a continued decline in revenues resulting from the decreasing market share and production levels of its largest domestic customers, along with sharp increases in commodity and energy prices that have outpaced any cost savings it has been able to achieve.