DANA CORPORATION

Case Highlights

• Represented 7,000 retirees threatened with termination of health care benefits
• Achieved settlement agreement that allowed continuation of benefits for retirees

Case Narrative

Dana Corporation is an American-based worldwide supplier of powertrain components such as axles, driveshafts, off-highway transmissions, sealing and thermal-management products, and service parts. On behalf of the Retiree Committee, DSI analyzed the financial condition of Dana and its international affiliates, evaluated the various proposals and counter-proposals regarding benefit modification and served as an expert witness, preparing a report for the court and deposition testimony. Together with the Retiree Committee’s members and its counsel, DSI achieved a result for retirees beyond all initial expectations.  The company expressed its intent to terminate all retiree benefits and, in addition, took the legal position that it need not comply with the mandates of Section 1114 of the Bankruptcy Code, which are essential in protecting retirees.  The company reached an $86.5 million agreement with the Committee that allowed a continuation of benefits.