Dana reclamation claims value appeals still rolling in

By Caroline Salls

Pittsburgh, May 8 - Dana Corp.'s reclamation claims value ruling drew two more appeals Monday, according to filings with the U.S. Bankruptcy Court for the Southern District of New York.

The court set the value of the reclamation claims at zero on April 26. The claims will have general unsecured status under Dana's plan of reorganization.

The most recent appellants are Hydro Aluminum Precision Tubing North America, LLC and Berlin Metals LLC.

Hyrdro Aluminum and Berlin Metals join Emhart Teknologies, Inc., Parker-Hannifin Corp., The Timken Corp., Toyotetsu America, Inc., Toyotetsu Mid America, LLC and Toyota Tsusho America, Inc.

As previously reported, before June 30, 2006, more than 450 parties demanded the return of previously shipped goods from Dana and asserted more than $297 million in reclamation claims.

In response, Dana asserted that various fact-intensive defenses to the reclamation claims reduced the total amount of reclamation claims acknowledged as valid to about $3 million, and the company argued that legal defenses to the reclamation claims based upon the existence of prior liens on the goods to be reclaimed rendered all of the reclamation claims valueless.

Dana is a Toledo, Ohio-based supplier of components, modules and systems to vehicle manufacturers and related aftermarkets. It filed for bankruptcy on March 3, 2006. Its Chapter 11 case number is 06-10354.

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