| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers D > Headlines for Dana Corp. > News item |
Dana official equity committee calls supply contract assumption or rejection request premature
By Caroline Salls
Pittsburgh, Aug. 23 - Dana Corp.'s official committee of equity security holders objected to Sypris Technologies, Inc.'s request to force the company to decide whether to assume or reject is supply contract by Oct. 3, saying the request is premature, according to a Wednesday filing with the U.S. Bankruptcy Court for the Southern District of New York.
According to the objection, Sypris and Dana are arbitrating a number of issues related to the supply contracts, which will determine some key terms of the contracts.
The equity committee said the outcome of the arbitration process is not known, and, as a result, it is not possible for Dana to determine the impact the results will have on Dana and Sypris' business relationship and the underlying supply contracts until the arbitration is completed.
In addition, the equity committee said Dana should not be rushed into making a decision on key executory contracts within only seven months of its Chapter 11 filing, particularly where the outcome of the arbitration is unknown.
According to Sypris' motion, the decision on whether to assume or reject its contracts soon is not difficult given the limited options available in the event of rejection.
Sypris also contended that further delay will cost Dana's estate millions of dollars in additional and unnecessary damages.
A hearing on Sypris' motion is scheduled for Aug. 28.
Dana, a Toledo, Ohio-based supplier of components, modules and systems to vehicle manufacturers and related aftermarkets, filed for bankruptcy on March 3. Its Chapter 11 case number is 06-10354.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.