DOJ Seeks Green Light For Dana Corp. Settlement

Law360, New York (September 11, 2008, 12:00 AM EDT) -- The U.S. attorney for the Southern District of New York has asked a judge to approve a stipulation that would resolve $420 million in environmental proofs of claim that the government filed in bankruptcy court against Dana Corp. in exchange for about $125 million in allowed general unsecured claims against the auto parts maker.

Pursuant to the reorganization plan Dana confirmed on Dec. 26, 2007, general unsecured creditors are paid in stock in the reorganized Dana entity, and the U.S. Treasury will monetize the stock the...
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