Trustee Slams Dana’s $6M Incentive Plan

Law360, New York (August 30, 2006, 12:00 AM EDT) -- The U.S. Trustee involved in the Chapter 11 case of Dana Corp. has filed an objection to the company’s proposed incentive plan, hoping to block the bankrupt auto parts maker from shelling out almost $6 million to retain key executives.

Diana G. Adams, the U.S. Trustee overseeing the bankruptcy, claims that the proposed incentive plan violates a newly passed Section 503 of the bankruptcy code “designed specifically to limit and restrict lavish insider retention and severance bonuses.”

Adams claims that Dana sought to gain approval for...
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