Late News.(Brief article)

Automotive News, July, 2007

Dana unveils plans to exit bankruptcy

DETROIT - Troubled parts supplier Dana Corp. on Friday announced a plan to leave Chapter 11 reorganization. The plan includes new labor agreements and a $750 million investment led by the private equity firm Centerbridge Capital Partners LP.

Dana and its unions - the UAW and the United Steelworkers - said they have agreed to four-year labor contracts that transfer retiree health care and other obligations to Voluntary Employee Beneficiary Associations.

Dana agreed to fund the associations with $704 million in cash and $80 million in stock in the company when it leaves Chapter 11. The unions also agreed to two-tier wage structures, with new hires starting at $14 an hour.

Centerbridge, of New...

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