| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers D > Headlines for Dana Corp. > News item |
Dana to buy back Stockton, Danville plants from subsidiary
By Caroline Salls
Pittsburgh, May 9 - Dana Corp. is looking to buy its Stockton, Calif., and Danville, Ky., plants back from subsidiary Dana Commercial Credit Corp., according to a Tuesday filing with the U.S. Bankruptcy Court for the Southern District of New York.
Dana Commercial Credit is a non-debtor wholly owned subsidiary of Dana Corp. non-debtor wholly owned subsidiary Dana Credit Corp.
Dana said it currently pays Dana Commercial Credit $45,013.75 a month in rent for Danville and $103,550 a month in rent for Stockton, and Dana has agreed to buy the plants back from Dana Commercial Credit for net book value or $1.33 million and $6.12 million, respectively.
Under the purchase agreements, Dana Commercial Credit will pay one-half of the insurance title expenses for the plants, all transfer taxes associated with the sales and one-half of the escrow agent fees.
The leases will be terminated at the closing of the plant purchases, and Dana will not owe anything under the leases.
According to the motion, Dana decided to wind down Dana Commercial Credit's businesses in 2001.
In connection with that wind-down, Dana entered a settlement agreement with Dana Credit in 2006 under which Dana agreed to pay all lease rental payments due to Dana Credit.
The settlement also extended Dana's deadline for assumption or rejection of Dana Credit property leases until the filing of a plan of reorganization.
Dana said the Stockton and Danville plants are the only remaining Dana Commercial Credit property leases it holds, and, because Dana Commercial Credit is winding down its operations, Dana needs to buy the plants back from Dana Commercial Credit.
A hearing is scheduled for May 23.
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.
© 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.