Dana seeks Chapter 11 bankruptcy protection

03/03/06 - newratings.com

NEW YORK, March 3 (newratings.com) – Auto parts supplier Dana Corp (DCN) Friday filed for Chapter 11 bankruptcy protection for its US operations.

Like other auto suppliers, Dana has been witnessing loss of momentum on account of a decelerating US auto industry. The performance of US auto parts makers has been severely impacted by rising raw material costs and production cutbacks at General Motors and Ford Motor Co. Toledo, Ohio-based Dana is the fourth largest maker of auto parts to file for bankruptcy since February last year, after Delphi Corp, Tower Automotive Inc and Collins & Aikman Corp. In its filing with the US Bankruptcy Court for the Southern District of New York, Dana said it has $1.45 billion in financing to continue its operations while restructuring the company. The auto parts supplier added that it had assets worth $7.9 billion and $6.8 billion in debts.