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Dana to hold estimation hearing on cleanup costs for six superfund sites in early January
By Reshmi Basu
New York, Sept. 19 - A federal judge ruled Wednesday that a hearing will be held in early January to settle a dispute between Dana Corp. and the U.S. government over the estimated costs for the cleanup of six different sites associated with Dana over the course of more than 100 years.
The government, on behalf of the Environmental Protection Agency and the Fish and Wildlife Service, has filed a total of $300 million in claims against Dana for the cleanup of those sites, where hazardous materials have been disposed. The bulk of those claims relate to a South Plainfield, N.J. site while $65 million relate to the other sites.
Dana has argued that the government has overstated the costs.
Furthermore, the company has remarked in earlier motions that it needs an expedited ruling if it is to exit bankruptcy by the end of the year. Currently, the government claims are the only unliquidated claims out there against Dana.
As part of its reorganization plan, Dana has a $3.25 billion cap on general unsecured claims. The company said it, therefore, needs a final determination to the amount of the government claims.
Dana asked for an estimation hearing to be held in December while the government has said that it would not be able to try the case until after January.
However, judge Burton R. Lifland of the U.S. Bankruptcy Court for the Southern District of New York sided with Dana, ordering that an estimation hearing be held in early January.
Dana, a Toledo, Ohio-based supplier of components, modules and systems to vehicle manufacturers and related aftermarkets, filed for bankruptcy on March 3, 2006 in the U.S. Bankruptcy Court for the Southern District of New York. Its Chapter 11 case number is 06-10354.
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