Dana Corporation (fka DCNAQ)

[Autom8]

Since filing Chapter 11, Dana has cut 8,000 of its 44,000 employees and lopped off $2.5 billion of its $11 billion in revenues through plant closings and asset sales.

When the plan is effective, up to 100 million new shares of stock will be paid to creditors to satisfy debt.

Existing shares, now trading at about 5 cents on the over-the-counter market, are expected to become worthless.

The company said it expects the new shares to trade on the New York Stock Exchange but isn't sure when trading will begin, Dana spokesman Chuck Hartlage said.

The CEO, who is also chairman of the board of directors, will retain a board seat.

But Mr. Burns will be replaced as chairman of that body. A new nine-member board will include retired U.S. Rep. Richard Gephardt (D., Mo.) and Jerome York, an adviser to investor Kirk Kerkorian.

Judge Lifland has authorized the company to pay up to $6.75 million in cash and stock to Mr. Burns when the company exits bankruptcy.

Five other executives will share in up to $4.77 million for their roles in steering the firm through the reorganization.

At some point after emergence, the company no longer will provide health benefits for retirees. The program will be taken over by a union-supervised trust fund.

Unionized retirees, including about 800 in the Toledo area, are uncertain about how their benefits will change.

"Of course, they're apprehensive," said Dick Rombkowski, a former Dana worker in Toledo who writes a column on retiree issues for a local UAW newspaper. "They don't know what will or won't be covered."

But company executives said they needed deep cuts to return the company to profitability.

And cost-cutting efforts are beginning to pay off.

After billions of dollars in losses, including $276 million through Oct. 31, company officials reported to Judge Lifland that Dana had a profit of $18 million in October.

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