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Toledo: Dana Corp. bankruptcy, restructuring and layoffs

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From the 10/21/05 Toledo Blade:

 

 

RESTRUCTURING

Dana cuts 700 jobs in region; ‘painful’ restructuring affects wages, benefits

By JULIE M. McKINNON

BLADE BUSINESS WRITER

 

In a sweeping overhaul to combat declining profits, Dana Corp. yesterday announced it would sell three business units, close factories, make employees pay more for health insurance, freeze wages, and cut benefits.

 

The moves, hailed by shareholders, means Toledo's largest corporation will pare 700 of its 1,950 area jobs, affecting virtually every operation it has in northwest Ohio and southeast Michigan.

 

Contact Julie M. McKinnon at:

[email protected] or 419-724-6087.

 

More at toledoblade.com:

http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20051021/BUSINESS03/510210343/-1/BUSINESS


From the 10/22/05 Toledo Blade:

 

 

AUTO INDUSTRY

Divestment may be tough for Dana Corp.

Buyers have many options

By JULIE M. McKINNON

BLADE BUSINESS WRITER

 

With operations from Visteon Corp. and other troubled automotive suppliers already up for sale, Toledo's Dana Corp. may have a tough time divesting $1.3 billion worth of businesses that include factories in Upper Sandusky, Wharton, and Archbold, some experts say.

 

Contact Julie M. McKinnon at:

[email protected] or 419-724-6087.

 

More at toledoblade.com:

http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20051022/BUSINESS03/510220380/-1/BUSINESS

 

  • 4 months later...

Mar 3, 1:55 PM EST

 

Auto Part Maker Dana Files Chapter 11

 

By JOHN SEEWER

Associated Press Writer

 

TOLEDO, Ohio (AP) -- Auto parts maker Dana Corp. filed for bankruptcy protection for its U.S. operations on Friday, joining a growing list of suppliers forced to make major restructuring moves because of the slumping U.S. auto industry.

 

Dana, which makes brakes, axles and other parts, has been in a downward spiral since the company announced last fall that it was restating earnings and lowering its profit forecast for 2005 because of accounting errors.

 

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On the Net:

 

Dana Corp.: http://www.dana.com

 

More at ap.prg:

http://hosted.ap.org/dynamic/stories/D/DANA_BANKRUPTCY?SITE=OHCOL&SECTION=HOME

Good thing I quit my job with Dana back in 2001.  Seemed like I was layed off every other month.

From the 3/8/06 Toledo Blade:

 

 

BANKRUPTCY

Unions wait for Dana's giveback demands

By GARY T. PAKULSKI

BLADE BUSINESS WRITER

 

While Dana Corp. has not requested it, experts said concessions in union contracts are likely and changes to pensions are possible as the Toledo auto supplier moves through bankruptcy.

 

The issues are critical because other firms in bankruptcy have sought similar wage and benefit reductions.

 

Contact Gary Pakulski at:

[email protected] or 419-724-6082.

 

More at toledoblade.com:

http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20060308/BUSINESS03/603080422/-1/RSS04


 

 

From same:

 

 

Competitors outpaced local auto supplier, experts say

Dana likely to be allowed to boost some prices

By JULIE M. McKINNON

BLADE BUSINESS WRITER

 

Ten years ago, Dana Corp. was without question the Big Three's premiere supplier of axles and drivetrain products. But since then, competitors have bridged the gap.

 

They invested in capacity to compete against the Toledo company's best-known products, and Dana was slow to respond, said Craig Fitzgerald, a partner with Plante & Moran LLP in Southfield, Mich. "I think Dana has lost a bit of their focus," said Mr. Fitzgerald, who concentrates on supplier issues.

 

Contact Julie M. McKinnon at:

[email protected] or 419-724-6087.

 

More at toledoblade.com:

http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20060308/BUSINESS03/603080399

 

From the 3/9/06 Toledo Blade:

 

 

Bankruptcy execs to get $125,000 a month

Dana reveals pay in court documents

By JULIE M. McKINNON

BLADE BUSINESS WRITER

 

Two newly appointed executives charged with guiding Dana Corp. through its bankruptcy will each receive $125,000 a month in pay.

 

At least 19 others helping from the same Michigan turnaround firm will be paid $300 to $670 an hour.

 

Contact Julie M. McKinnon at:

[email protected] or 419-724-6087.

 

More at toledoblade.com:

http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20060309/BUSINESS03/603090349/-1/RSS04

 

LOL...Mr. Burns.  From the 3/9/06 Toledo Blade:

 

 

AN INTERVIEW WITH THE BLADE

CEO: Dana will survive ‘a humiliating process’

Burns hopes to exit bankruptcy in 18 months

By JULIE M. McKINNON

BLADE BUSINESS WRITER

 

Toledo's largest corporation will run its business, not consultants or creditors, during its bankruptcy, and Dana Corp. employees should be confident in the outcome, the chief executive said yesterday.

 

"It's somewhat of a humiliating process, but on the other hand, people have risen to the occasion to do the right thing," Mike Burns told The Blade in his only extensive media interview since Dana filed for Chapter 11 bankruptcy a week ago.

 

Contact Julie M. McKinnon at:

[email protected] or 419-724-6087.

 

More at toledoblade.com:

http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20060310/BUSINESS03/603100332/-1/RSS04

 

From the 3/11/06 Toledo Blade:

 

 

Dana creditor committee includes UAW

Panel will determine how firm's debts are paid

BLADE STAFF AND WIRE REPORTS

 

The United Auto Workers, but none of the Big Three automakers, were chosen yesterday to be on a committee of creditors in Dana Corp.'s Chapter 11 bankruptcy case.

 

The committee will be involved in determining how debts are paid and in reviewing the company's bankruptcy-exit plan. The panel met in a Manhattan hotel.

 

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http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20060311/BUSINESS03/603110401/-1/RSS04

 

From the 3/15/06 Toledo Blade:

 

 

DANA BANKRUPTCY

Experts say timetable could be optimistic

Company predicted exit in 18 months

By JULIE M. McKINNON

BLADE BUSINESS WRITER

 

Dana Corp. expects to emerge from bankruptcy protection in 18 months, but experts said the Toledo auto supplier may be too optimistic about its ability to conclude a restructuring plan so quickly.

 

The Fortune 500 firm is likely to need to renegotiate union contracts, deal with pensions and other built-in costs, and make other changes, all while confronting ongoing problems in the auto industry, experts said.

 

Contact Julie M. McKinnon at:

[email protected] or 419-724-6087.

 

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More at: http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20060315/BUSINESS03/603150416/-1/RSS04

 

From the 3/17/06 Toledo Blade:

 

 

MAP: Dana property in metro Toledo

 

Firm's plans for owned, leased real estate uncertain

 

Dana Corp.'s stately Dorr Street headquarters, with its sprawling campus, is familiar to many Toledoans. The auto supplier's modern Maumee technical center is in a prime spot for I-475 motorists to see.

 

But the bankrupt Fortune 500 firm owns or leases numerous other properties in and around the region, from a pair of Richards Road houses near a headquarters side entrance to factories with more than 1.2 million square feet in Toledo, Archbold, Antwerp, Upper Sandusky, Wharton, and Lima, Ohio.

 

- Julie M. McKinnon

 

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More at http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20060317/BUSINESS03/603170328/-1/RSS04

 

From the 3/23/06 Toledo Blade:

 

 

Bankrupt firm posts $1.6 billion loss for '05

Even without charges, supplier had no profit

By JULIE M. McKINNON

BLADE BUSINESS WRITER

 

Toledo's Dana Corp. lost more than $1.6 billion last year as the bankrupt auto supplier took a series of special charges, including $1.2 billion worth in one quarter alone.

 

Still, even without those charges, Dana failed to make a profit in either the businesses it plans to keep or in those it wants to divest this year as part of a restructuring announced before filing for Chapter 11 reorganization this month.

 

Contact Julie M. McKinnon at:

[email protected] or 419-724-6087.

 

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More at: http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20060323/BUSINESS03/603230358/-1/RSS04

 

From the 3/24/06 Toledo Blade:

 

 

More work overseas likely, Dana tells lenders

Analysts say move could cut U.S. jobs

By JULIE M. McKINNON

BLADE BUSINESS WRITER

 

Bankruptcy forces corporations to make tough cost-cutting decisions, and Dana Corp. told lenders this week that it expects to increase its presence overseas, which analysts say could mean less work in the United States.

 

The Toledo auto supplier's chief executive officer has stressed for two years the need to pursue more work outside North America. But in a presentation to lenders this week, the company said it expects to reduce labor and logistics costs by increasing its presence in Mexico, China, India, Eastern Europe, and South America.

 

Contact Julie M. McKinnon at:

[email protected] or 419-724-6087.

 

 

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More at: http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20060324/BUSINESS03/603240357/-1/RSS04

 

  • 2 weeks later...

From the 4/2/06 Toledo Blade:

 

Blunt-talking exec in tight spot

Leader of Dana called decisive, demanding

By JULIE M. McKINNON

BLADE BUSINESS WRITER

 

From the start, Mike Burns never minced words about cost cutting at Dana Corp.

 

Toledo's biggest firm was decentralized for decades, and reversing that two years ago was the new chief executive's first major target.

 

Contact Julie M. McKinnon at: [email protected] or 419-724-6087.

 

 

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More at: http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20060402/BUSINESS03/604010407/-1/RSS04

 

More work overseas likely, Dana tells lenders

 

What a surprise.  :roll:

  • 3 weeks later...

From the 4/20/06 Toledo Blade:

 

 

Judge nixes bid by asbestos group in Dana bankruptcy

FROM BLADE STAFF AND WIRE REPORTS

 

A New York bankruptcy judge yesterday denied a motion that would have created a separate creditors' committee for asbestos-injury claimants, a move that could have bogged down the Chapter 11 restructuring of Dana Corp.

 

U.S. Bankruptcy Judge Burton Lifland dismissed the request, saying, "This is not an asbestos-driven case."

 

 

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More at: http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20060420/BUSINESS03/604200431/-1/RSS04

 

  • 3 weeks later...

Dana delays report of first-quarter results

 

Dana Corp., Toledo's largest company, said yesterday its first-quarter financial report will be delayed, but it expects a record loss.

 

In a filing with the U.S. Securities and Exchange Commission, it said it needs more time to address expenses and other issues related to its Chapter 11 bankruptcy. The firm said it plans to file the report before May 31, more than two weeks after it was due. Its last two quarterly filings were late.

 

 

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More at: http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20060512/BUSINESS03/605120417/-1/RSS04

 

Not good.  My uncle worked for Dana and got layed off about two years ago.

My company is in bankruptcy, and I guess it is typical for Chapter 11 companies to miss filing deadlines.  Since every expense has to approved by the court, it gets complicated.

From the 5/18/06 Toledo Blade:

 

 

DANA CORP.

'Corporate raider' bids for role in Dana future; Icahn becomes a major creditor

By MARY-BETH McLAUGHLIN

BLADE BUSINESS WRITER

 

Billionaire investor Carl Icahn, often dubbed a corporate raider, is attempting to shape the reorganization of Toledo’s largest company, Dana Corp.

 

His American Real Estate Holdings LP has become the lender of at least $101 million of Dana’s $2.25 billion in unsecured debt, all purchased after the auto-parts supplier filed for bankruptcy protection in March.

 

Contact Mary-Beth McLaughlin at [email protected] or 419-724-6199.

 

 

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More at: http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20060518/BUSINESS03/605180474/-1/RSS04

 

  • 2 weeks later...

From the 6/1/06 Toledo Blade:

 

 

Chapter 11 Dana's loss in quarter $126M

By JULIE M. McKINNON

BLADE BUSINESS WRITER

 

Toledo's Dana Corp. lost $126 million last quarter, or 84 cents a share, after the bankrupt auto supplier spent $55 million on its Chapter 11 reorganization process.

 

Overall, operations Dana wants to sell this year - which includes factories in Upper Sandusky, Wharton, and Archbold - lost $21 million in the first quarter.

 

Contact Julie M. McKinnon at:

[email protected] or 419-724-6087.

 

 

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More at: http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20060601/BUSINESS03/606010417/-1/RSS04

 

  • 2 weeks later...

From the 6/14/06 Lima News:

 

 

Dana’s Lima downsizing still pending

By TIM RAUSCH

419-993-2097

06/14/2006

[email protected]

 

LIMA — The union leader at Dana Corp.’s Spicer Driveshaft Division plant in Lima said the planned downsizing has recently turned into upsizing.

 

United Auto Workers Local 1765 President Scott Williams said there have been call backs from previous layoffs and the company has been hiring others to meet the demand of truck orders.

 

 

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More at: http://www.limaohio.com/story.php?IDnum=26654

 

From the 6/21/06 Toledo Blade:

 

 

DANA CORP.

Court deals setback to Icahn role in bankruptcy

Judge grants 2nd delay in hearing on trading

FROM BLADE STAFF AND WIRE REPORTS

 

WASHINGTON - A bankruptcy judge postponed by more than a month a hearing on rules for trading in the stock and debt of Toledo's Dana Corp., dealing a setback to billionaire Carl Icahn's bid to gain more influence over the auto-parts maker's bankruptcy reorganization.

 

Judge Burton R. Lifland of the U.S. Bankruptcy Court in Manhattan postponed the hearing until Aug. 9, ruling that a delay would be in the best interests of Dana investors, creditors, and shareholders.

 

 

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More at: http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20060621/BUSINESS03/606210400/-1/RSS04

 

  • 2 weeks later...

From the 6/30/06 Toledo Blade:

 

 

BANKRUPTCY PROCEEDINGS

Committee named to represent interests of Dana shareholders

By JULIE M. McKINNON

BLADE BUSINESS WRITER

 

An institutional investor and two hedge funds will represent Dana Corp. shareholders when the Toledo auto supplier haggles over its plan to emerge from bankruptcy, a sign the firm’s stock may have some value when the Chapter 11 reorganization is completed, experts say.

 

Brandes Investment Partners LP of San Diego, Appaloosa Management LP of Chatham, N.J., and Harbinger Capital Master Fund I Ltd. of New York were appointed this week by the U.S. trustee to an official committee for equity security holders.

 

Contact Julie M. McKinnon at: [email protected] or 419-724-6087.

 

 

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More at: http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20060630/BUSINESS03/60630048/-1/RSS04

 

A $6 millon bonus for someone who ran the company into the ground.  Seriously.  From the 7/1/06 Toledo Blade:

 

 

PROPOSED BONUSES

Execs of ailing Dana could be paid millions

By JON CHAVEZ

BLADE BUSINESS WRITER

 

Michael Burns, chief executive of Toledo's financially troubled Dana Corp., would receive a $6 million bonus if the firm successfully emerges from its Chapter 11 bankruptcy, the company has proposed.

 

The automotive parts supplier this week asked U.S. Bankruptcy Court in New York for permission to give $4.3 million in extra compensation for five other key executives who make up the local firm's management team.

 

Contact Jon Chavez at:

[email protected] or 419-724-6128.

 

 

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More at: http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20060701/BUSINESS03/607010340/-1/RSS04

 

From the 7/6/06 Toledo Blade:

 

 

DANA BANKRUPTCY

$1.6M in bonuses to 5 top executives preceded Chapter 11

By JULIE M. McKINNON

BLADE BUSINESS WRITER

 

In the two months before filing for bankruptcy protection, Toledo's Dana Corp. apparently gave $1.6 million in bonuses to five top executives, including a $1 million payout to chief Mike Burns, based on information in new documents filed in U.S. Bankruptcy Court in Manhattan.

 

Three executives who retired before or soon after Dana filed for Chapter 11 reorganization on March 3 were given $454,000 in bonuses, and an executive who remains at the auto supplier received an extra $146,250.

 

Contact Julie M. McKinnon at:

[email protected] or 419-724-6087.

 

 

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More at: http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20060706/BUSINESS03/607060349/-1/RSS04

 

Another typical story.  The rich get richer, the working class gets layed off. 

 

Giving bonuses like this just before bankruptcy should be ILLEGAL.  Fry them all!!!!!!!!!!!!!!

  • 2 weeks later...

From the 7/21/06 Toledo Blade:

 

 

CASH FLOW PROBLEMS

Ailing company hints at cuts in retiree benefits

Move could affect thousands

By GARY T. PAKULSKI

BLADE BUSINESS WRITER

 

NEW YORK - Dana Corp., which filed for bankruptcy protection in March because of cash flow problems, indicated to its creditors yesterday that it wants to reduce its retiree benefits.

 

No specifics were disclosed at the auto supplier's first such bankruptcy court meeting with creditors in Manhattan.

 

Contact Gary T. Pakulski at:

[email protected] or 419-724-6082.

 

 

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More at: http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20060721/BUSINESS03/607210399/-1/RSS04

 

From the 7/22/06 Toledo Blade:

 

 

Retirees fret over Dana benefit cuts

Possible action by Toledo firm would hit about 27,000 in U.S.

By MARY-BETH McLAUGHLIN and JON CHAVEZ

BLADE BUSINESS WRITERS

 

Jan Konoff's response was quick when asked her reaction to the news that Dana Corp. expects to cut retiree health care benefits.

 

"I was sick to my stomach," said the Toledoan, who retired about 18 months ago from the company where she worked for 42 years.

 

Contact Mary-Beth McLaughlin at:

[email protected] or 419-724-6199.

 

 

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More at: http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20060722/BUSINESS03/607220379/-1/RSS04


 

 

From same:

 

 

Dana lengthens pact warding off takeovers

 

Dana Corp. said yesterday it has extended its anti-takeover agreement for 10 more years until 2016.

 

The pact covers share purchase rights and is designed to deter unwanted takeover tactics, according to a filing the Toledo firm made with the U.S. Securities and Exchange Commission.

 

 

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More at: http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20060722/BUSINESS03/60722001/-1/RSS04

 

  • 4 weeks later...

From the 8/15/06 Toledo Blade:

 

 

DANA CORP.

Creditors object to exec bonuses

Panel cites threats to retiree funds

By MARY-BETH McLAUGHLIN

BLADE BUSINESS WRITER

 

Creditors of bankrupt Dana Corp. have objected to the firm's plan to pay "excessive, unwarranted" bonuses to its top executives while its retirees' health-care coverage may be chopped.

 

The creditors' committee, in a court filing yesterday, especially objected to a new company plan that doubles to $18 million the proposed payout to Michael Burns, Dana chief executive, if he were to leave the company or be terminated.

 

Contact Mary-Beth McLaughlin at

[email protected] or 419-724-6199.

 

 

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More at: http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20060815/BUSINESS03/608150372/-1/RSS04

 

From the 8/17/06 Toledo Blade:

 

 

DANA CORP.

Lawsuit alleges fraud by execs

Investors may have lost $1B, attorney for plaintiffs says

By JULIE M. McKINNON

BLADE BUSINESS WRITER

 

As part of a top management dictate to all Dana Corp. plants, a 6 percent profit was forecast for the parts supplier's Lima, Ohio, factory, even though the operation consistently lost money between 2003 and 2005.

 

A class-action lawsuit filed in U.S. District Court in Toledo this week contends that forecast is one way Mike Burns and Bob Richter used accounting manipulations to conceal financial results at the Dorr Street firm and to mislead investors.

 

Bloomberg News Service contributed to this report.

 

Contact Julie M. McKinnon at:

[email protected] or 419-724-6087.

 

 

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More at: http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20060817/BUSINESS03/608170348/-1/BUSINESS

 

  • 3 weeks later...

From the 9/6/06 Dispatch:

 

 

NEW YORK

Judge denies Dana’s plan for execs’ compensation

Wednesday, September 06, 2006

 

A federal bankruptcy judge rejected a compensation plan for six top executives of Dana Corp., in a test of a new bankruptcy law designed to prevent companies from paying big bonuses to keep senior managers on board while rank-and-file workers have their benefits or their jobs cut.

 

 

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More at: http://www.dispatch.com/business-story.php?story=dispatch/2006/09/06/20060906-D2-08.html

 

  • 4 weeks later...

From the 9/29/06 Toledo Blade:

 

 

Dana reports decrease in monthly net loss

 

The bankrupt-automotive parts maker Dana Corp. said yesterday its monthly net financial loss narrowed to $16 million in August from $43 million in July.

 

 

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More at: http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20060929/BUSINESS03/609290430/-1/BUSINESS

 


 

From the 9/30/06 Toledo Blade:

 

 

Dana to take $175M impairment charge

 

Toledo’s largest corporation, which is in bankruptcy, disclosed yesterday that it expects to record an impairment charge of about $175 million in the third quarter from the sale of some of its credit unit’s assets.

 

Dana Corp., an automotive parts maker, said in a U.S. Securities and Exchange Commission filing that it has accelerated the sale of the assets of unit Dana Credit Corp., once it reaches an agreement with its noteholders. Then, the proceeds from the sale would be used to make payments to the noteholders.

 

 

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More at: http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20060930/BUSINESS03/60930001/-1/RSS04

 

From the 10/3/06 Toledo Blade:

 

 

DANA BANKRUPTCY

Exit plan unlikely by stated deadline

Company, experts cite industry uncertainty

By JULIE M. McKINNON

BLADE BUSINESS WRITER

 

Three months from today, Toledo's Dana Corp. is scheduled to file its plan to emerge from bankruptcy protection.

 

But with so much uncertainty in the U.S. auto industry, including cost-cutting pressures from the Big Three as their market share declines and production is scaled back, three months likely won't be enough to finish formulating a plan, the company and experts agree.

 

Contact Julie M. McKinnon at:

[email protected] or 419-724-6087.

 

 

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More at: http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20061003/BUSINESS03/610030315/-1/BUSINESS

 

  • 1 month later...

From the 10/25/06 Toledo Blade:

 

 

Dana gets extension to devise exec pay plan

 

Toledo's Dana Corp. yesterday was given a couple of more weeks to work with creditors and formulate an acceptable compensation plan for leader Mike Burns and five other top executives.

 

Last month, Judge Burton Lifland of U.S. Bankruptcy Court in Manhattan denied Dana's most recently revised executive compensation request, which would have given a bonus of at least $4 million to the chairman and chief executive if the Toledo auto supplier emerges from Chapter 11 bankruptcy protection or is sold.

 

- Julie M. McKinnon

 

 

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More at: http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20061025/BUSINESS03/610250378/-1/BUSINESS

 

From the 11/8/06 Toledo Blade:

 

 

New plan ties exec payout to set of goals

CEO could receive up to $6.75 million

By JULIE M. McKINNON

BLADE BUSINESS WRITER

 

Under Dana Corp.'s latest attempt to beef up executive compensation during its bankruptcy, Chief Executive Mike Burns could get up to $6.75 million in cash and stock in the newly emerged company if certain financial goals are met in the next two years.

 

If those goals are not met, however, Mr. Burns would get just his base pay and no bonus through 2008.

 

Contact Julie M. McKinnon at:

[email protected] or 419-724-6087.

 

 

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More at: http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20061108/BUSINESS03/611080336/-1/BUSINESS

 

Article published November 10, 2006

 

Dana charts plan to slash $540M a year; firm may shut 8 more sites, end retiree health coverage

 

By JULIE M. McKINNON

BLADE BUSINESS WRITER

 

Toledo's Dana Corp. yesterday spelled out a far-reaching plan to cut costs by up to $540 million a year by closing eight more factories, eliminating retiree health-care, reducing labor costs, and renegotiating customer contracts.

 

The scope of the actions was massive and prompted some immediate criticism.

 

Contact Julie M. McKinnon at:

[email protected]

or 419-724-6087

 

 

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More at:  http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20061110/BUSINESS03/611100335

  • 3 weeks later...

From the 11/11/06 Toledo Blade:

 

 

BANKRUPTCY STRATEGY

Dana plan involves price hike Backfire possible

By JULIE M. McKINNON

BLADE BUSINESS WRITER

 

Getting the Big Three and other customers to pony up money for existing parts contracts is by far the single biggest chunk of bankrupt Dana Corp.'s $405 million to $540 million cost-cutting plan - and the toughest to make happen.

 

Automakers constantly want to lower parts prices, and most other auto suppliers are trying to charge more. And Dana's strides to get price increases from customers, especially if they must be argued in U.S. Bankruptcy Court in Manhattan, could be risky because the Toledo firm may not get more business from them, said attorney Shawn Riley of McDonald Hopkins Co. in Detroit.

 

Contact Julie M. McKinnon at:

[email protected] or 419-724-6087.

 

 

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More at: http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20061111/BUSINESS03/611110408/-1/BUSINESS

 


 

From the 11/10/06 Cambridge Daily Jeffersonian:

 

 

Dana closing plants

Caldwell plant's future unknown

November 10, 2006

Julie Watts

The Daily Jeffersonian

 

The Dana Corporation, an auto parts maker based in Toledo, said Thursday it plans to close eight U.S. plants and down-size three others in the country.

 

It is unknown if the plant in Caldwell, the major private employer in Noble County, is among those set to close.

 

 

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More at: http://www.daily-jeff.com/news/article/386144

 

From the 11/16/06 Toledo Blade:

 

 

Unions protest executive payout proposal

FROM BLADE STAFF AND WIRE REPORTS

 

Unions representing Dana Corp. employees say the company’s proposal to pay millions of dollars to executives while it plans to cut health care and retiree benefits for other workers should be struck down.

 

“It is precisely this double standard — insulating executives from the consequences of bankruptcy while workers must cope with harsh, draconian consequences — that Congress sought to eliminate” with the recent bankruptcy reform act, the unions said this week in court papers.

 

 

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More at: http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20061116/BUSINESS03/61116025/-1/BUSINESS

 

From the 11/22/06 Toledo Blade:

 

 

Ruling on Dana bonuses delayed

 

As objections continue from Dana Corp. workers and retirees who face pay and benefit cuts, a bankruptcy judge postponed a decision yesterday on whether six top executives should be eligible for up to $11.5 million in bonuses for the next two years.

 

During a hearing, the U.S. Justice Department remained critical of the long-term incentive plan being considered by Judge Burton Lifland in U.S. Bankruptcy Court in Manhattan.

 

 

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More at: http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20061122/BUSINESS03/611220333/-1/BUSINESS

 

  • 2 weeks later...

From the 12/1/06 Toledo Blade:

 

 

Dana can pay bonuses with caps to execs

By JULIE M. McKINNON

BLADE BUSINESS WRITER

 

Toledo's Dana Corp. can pay long-term incentive bonuses to leader Mike Burns and five other executives for the next two years, but a cap must be specified since the men already are eligible for millions of dollars in annual incentives, a judge decreed yesterday.

 

It remains unclear, however, whether retirees, unions, and other objectors to the plan endorsed by other unsecured and equity security holders will be among those with whom Dana has to negotiate.

 

Contact Julie M. McKinnon at:

[email protected] or 419-724-6087.

 

 

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More at: http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20061201/BUSINESS03/612010379/-1/BUSINESS

 

From the 12/5/06 Toledo Blade:

 

 

German firm to buy Dana engine parts unit

 

Auto supplier Dana Corp. said yesterday it plans to sell its engine parts business to German supplier Mahle GmbH for $157 million.

 

The non-core operation of the Toledo Fortune 500 firm has annual revenue of about $670 million and has 5,000 employees at 39 facilities in 10 countries.

 

 

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More at: http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20061205/BUSINESS03/61205004/-1/BUSINESS

 

From the 12/6/06 Toledo Blade:

 

 

Dana seeks extension of bankruptcy-exit filing

 

Dana Corp., Toledo's largest company, which has been in bankruptcy since March, has asked the court for an eight-month extension on its time to file a bankruptcy-exit plan.

 

It wants to move the deadline from Jan. 3 to Sept. 3, saying it needs more time to complete its "difficult, if not daunting, tasks" to restructure.

 

 

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More at: http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20061206/BUSINESS03/612060360/-1/BUSINESS

 

  • 1 month later...

From the 12/13/06 Blade:

 

 

$6.5M CEO bonus cap proposed for Dana

By JULIE M. McKINNON

BLADE BUSINESS WRITER

 

Toledo's Dana Corp. wants to cap leader Mike Burns' total bonuses at $6.5 million next year despite continuing objections from retirees and workers facing benefits, job, and wage cuts.

 

The bankrupt auto supplier says the $6.5 million figure would be 25 percent less than its chairman and chief executive officer could have received for next year, although it has not changed the maximum $4.5 million amount Mr. Burns would get under a long-term incentive plan approved last month by U.S. Bankruptcy Court in Manhattan.

 

Contact Julie M. McKinnon at:

[email protected] or 419-724-6087.

 

 

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More at: http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20061213/BUSINESS03/612130390/-1/BUSINESS

 

From the 12/15/06 Blade:

 

 

Dana: Unions urge rejection of pay proposal

GARY T. PUKULSKI

BLADE BUSINESS WRITER

 

Unions at Dana Corp. urged a bankruptcy judge yesterday to reject a company request to pay its chief executive officer up to $7.5 million a year during the firm's Chapter 11 case.

 

The cap, which represents the maximum amount the company would be able to pay CEO Mike Burns, does "not relate in any manner to the sacrifices other employee groups are being asked to bear in this case," lawyer Babette Ceccotti wrote on behalf of the United Auto Workers and the United Steelworkers.

 

 

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More at: http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20061215/BUSINESS06/612150327/-1/BUSINESS

 

From the 12/19/06 Blade:

 

 

Judge lowers CEO bonus cap

By JULIE M. McKINNON

BLADE BUSINESS WRITER

 

A bankruptcy judge capped annual bonuses yesterday for Dana Corp.'s leader at $5.5 million, which is $1 million less than the Toledo company had negotiated.

 

Judge Burton Lifland of U.S. Bankruptcy Court in Manhattan signed an order saying that Dana can pay Mike Burns, the Toledo auto supplier's chairman and chief executive officer, up to $5.5 million in annual bonuses during the bankruptcy on top of his salary of just over $1 million a year if the company meets certain financial targets.

 

Contact Julie M. McKinnon at: [email protected] or 419-724-6087.

 

 

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More at: http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20061219/BUSINESS03/612190378/-1/BUSINESS

 

From the 12/20/06 Blade:

 

 

Judge refuses to OK expenses for Dana consultants

FROM BLADE STAFF AND WIRE SERVICES

 

On the same day a judge gave Dana Corp. of Toledo an additional eight months to submit a bankruptcy exit plan, he rejected a request for expenses racked up by the firm's consultants, citing such extravagances as $300 taxi rides and $9,000 airfares.

 

Judge Burton Lifland of the U.S. Bankruptcy Court in Manhattan yesterday approved lawyers' and consultants' requests for about $22 million in fees, subject to a 20 percent holdback.

 

 

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More at: http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20061220/BUSINESS03/612200458/-1/BUSINESS

 

From the 12/28/06 Blade:

 

 

Dana benefit, labor plans to go to trial March 12

 

The judge overseeing Dana Corp.’s bankruptcy case set a March 12 trial date to consider the Toledo auto-parts supplier’s plans to end retiree health benefits and to alter labor contracts.

 

The decision of Judge Burton Lifl and of U.S. Bankruptcy Court in New York City follows a contentious Dec. 19 hearing in which labor unions and retirees said the company was trying to pressure them to make concessions by setting an aggressive schedule to evaluate proposals.

 

 

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More at: http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20061228/BUSINESS03/61228002/-1/BUSINESS

 

From the 1/6/07 Blade:

 

 

Dana asks for $200M in extra bankruptcy cash

 

Dana Corp.’s bid for a $200 million increase in its bankruptcy financing comes as the Toledo auto-parts supplier struggles to bring in enough cash to keep the business running.

 

The firm expects its cash availability to steadily decline over the next several months, and “ultimately become insufficient to sustain its ongoing operations,” said court papers filed this week in the U.S. Bankruptcy Court in Manhattan.

 

 

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More at: http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20070106/BUSINESS03/70106008/-1/BUSINESS

 

  • 2 months later...

From the 1/20/07 Blade:

 

 

Dana retirees seeking to review financial data

 

Dana Corp. nonunion retirees on a committee during the Toledo firm’s Chapter 11 bankruptcy are fighting to review copies of so-called “Hellweek” financial documents for 2005 and 2006.

 

The auto supplier has held “Hellweek” for at least 20 years to pore over budget, project, and analysis data from plants, but the firm will not let retirees see the requested documents, according to a filing this week in Manhattan’s U.S. Bankruptcy Court. A hearing is set for Wednesday.

 

 

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More at: http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20070120/BUSINESS03/70120007/-1/BUSINESS

 

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