Dana May Cut Benefits in Restructuring

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Dana May Cut Benefits in Restructuring
2006-07-22
Auto parts maker Dana Corp. told creditors it may seek cuts on retiree benefits as part of its restructuring under federal bankruptcy protection. The company needs relief from legacy costs that include health insurance and prescription drug coverage for retired employees, Corinne Ball, a company lawyer, told creditors at a bankruptcy court meeting in New York Thursday. Officials did not announce any plans and would not provide any details after the meeting. Lawyers for the company will file a motion Friday in U.S. Bankruptcy Court in New York, asking that the court create a committee including retirees and union representatives so they can address retiree benefits, Dana spokesman Fredric Spar said. "Nothing has been determined," he said. Dana filed for bankruptcy protection in March because of rising energy costs that drove up production costs and hurt demand for its customers' products.
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