Dana creditors committee consents to $5.17 million July 13 pension payment

By Caroline Salls

Pittsburgh, June 25 - Dana Corp. has reached an agreement with its official committee of unsecured creditors that will allow the company to make the $5.17 million pension payment due July 13, according to a Monday filing with the U.S. Bankruptcy Court for the Southern District of New York.

According to the agreement, the committee feels that post-bankruptcy contributions to the company's pension plans on account of pre-bankruptcy services are not required to be made under the bankruptcy code.

Through the agreement, the committee is giving its consent for the July 13 payment only.

The agreement is subject to court approval.

Dana is a Toledo, Ohio-based supplier of components, modules and systems to vehicle manufacturers and related aftermarkets. It filed for bankruptcy on March 3, 2006. Its Chapter 11 case number is 06-10354.

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