Dana Files For Bankruptcy
Dana Corp. said that its
While its non-automotive axle and driveshaft businesses have reported healthy sales, Dana has run into numerous rough spots in the past year beyond raw materials costs and declining market share at key North American automotive customers Ford and General Motors Corp. The filing did not surprise industry analysts. Dana, which was in talks with lenders on financing alternatives, on Wednesday announced it had failed to make $21 million of bond interest payments. Dana shares were down 26 cents, or 25.5 percent, to $0.67 on the New York Stock Exchange following the announcement.
The company last October announced plans to cut jobs, plants and non-core business and shift some production to lower-cost areas to focus its operations, something that will continue under the Chapter 11 reorganization, it said. Dana posted losses totaling $1.23 billion through the first nine months of 2005. Dana reported total assets of $7.9 billion and liabilities of $4.7 billion, on a consolidated basis, as of Sept. 30.