Dana Shareholders Warn Against Cutting Benefits

Law360, New York (August 7, 2006, 12:00 AM EDT) -- A group of equity security holders for bankrupt Dana Corp. has cautioned that modifying employee retirement benefits may end up hurting the struggling auto parts supplier.

In a Friday filing with the U.S. Bankruptcy Court in Manhattan, the two hedge funds— Appaloosa Management L.P. and Harbinger Capital Masters Fund—and the mutual fund—Brandes Investment Partners—comprising Dana’s equity security holders committee—cautioned against Dana altering the benefits it currently offers retirees.

“While the equity committee recognizes that, on an annual basis, the debtors spend substantial amounts on account of...
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