Dana Corporation (fka DCNAQ)

[goldencalf]

Dana Corp. fails to exit bankruptcy by self-set deadline

Dana Corp. yesterday missed a self-imposed deadline for exiting Chapter 11 bankruptcy.

The reason for the delay was unclear, although a report by a financial news service pointed to problems in the credit markets.

Officials of the Toledo auto-parts supplier previously said they expected to emerge from nearly two years of bankruptcy protection by Jan. 31. There was no known harm to the company by missing the deadline.

"We're still progressing, and we'll put out an announcement as soon as we can," Dana spokesman Chuck Hartlage said last night.

The firm has commitments for $2 billion in financing, including a $1.35 billion term loan promised by a lending syndicate led by Citigroup, Lehman Brothers, and Barclays.

But Reuters Loan Pricing Corp., citing unnamed sources, said that the parties had sweetened terms in an attempt to entice reluctant lenders to join the deal.

The company headquartered on Dorr Street was unable to pay its bills when it filed for protection from creditors in March, 2006. It later cut employee benefits, closed and sold some factories, established a separate account for retiree health care, and made other changes.

The company, however, will be leaving bankruptcy at a troubled time in the auto industry, and its soon-to-be issued stock could struggle in the volatile markets.

http://toledoblade.com/apps/pbcs.dll/article?AID=/20080201/BUSINESS03/802010389