Dana’s Credit Unit Unveils Plan To Pay Noteholders

Law360, New York (October 31, 2006, 12:00 AM EST) -- Embattled auto parts maker Dana Corp. said Monday that its noteholders may enact a forbearance pact that will help fix a default that occurred during the company’s reorganization.

The notes in question belong to Dana subsidiary Dana Credit Corp., and total $399 million, the company revealed in a recent filing with the U.S. Securities and Exchange Commission.

An ad hoc committee representing the noteholders that own a majority of that amount claimed that these notes became due as soon as the Toledo, Ohio-based company filed for...
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