Dana granted court approval to appoint non-union retiree committee

By Caroline Salls

Pittsburgh, Aug. 9 - Dana Corp. obtained court approval to appoint a committee of non-union retired employees in the company's Chapter 11 case, according to a Wednesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

According to the motion, 6,400 of the approximately 17,200 union-represented individuals who receive retiree benefits are associated with a plant that has either closed or been sold.

Dana said it does not have revenue to finance the retained liabilities from those businesses. The company also said it has determined it is likely that it will become necessary for it to seek relief under the bankruptcy code section 1114 with respect to its retiree benefits.

Dana said its expense for providing retiree benefits to U.S. retirees was about $130 million in 2005, and as of Dec. 31, 2005 the present value of its obligation for benefits was $1.5 billion.

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.

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