Dana Corporation Receives Waiver Extensions Under Credit Facilities
November 21 2005 - 11:16AM
PR Newswire (US)
TOLEDO, Ohio, Nov. 21 /PRNewswire-FirstCall/ -- Dana Corporation
(NYSE:DCN) announced today that it has received a continuation and
extension of waivers related to its five-year bank facility and
accounts receivable securitization program and has amended the
agreements related to both facilities. (Logo:
http://www.newscom.com/cgi-bin/prnh/19990903/DANA) The new waivers
extend the existing waivers under these agreements from Nov. 30,
2005, to May 31, 2006, including waivers of the principal financial
covenants in the five-year bank facility. In addition, they waive
non- compliance with other covenants related to the delayed filing
or delivery of Dana's financial statements for the third quarter of
2005, as well as for the earlier periods that the company
previously announced it will restate. "We appreciate the support of
our bank group. These waivers provide us the flexibility and time
to complete the restatements in an orderly fashion," said Dana
Chief Financial Officer Bob Richter. "We look forward to working
with our bank group on additional modifications to the existing
facilities or the creation of successor facilities to address
Dana's needs beyond the expiration of the waivers." As part of the
amendment of the five-year bank facility, Dana and its wholly-owned
domestic subsidiaries are granting security interests in certain
domestic current assets and machinery and equipment. As part of the
amendment to the accounts receivable securitization program, Dana's
minimum corporate credit rating required under the agreement has
been reduced. The new waivers under both agreements provide for
early termination in the event Dana is not able to deliver its
restated financial statements by Dec. 30, 2005. Dana expects to
file its restated financial statements with the Securities and
Exchange Commission prior to this date. About Dana Corporation Dana
people design and manufacture products for every major vehicle
producer in the world. Dana is focused on being an essential
partner to automotive, commercial, and off-highway vehicle
customers, which collectively produce more than 60 million vehicles
every year. A leading supplier of axle, driveshaft, engine, frame,
chassis, and transmission technologies, Dana employs 46,000 people
in 28 countries. The company is based in Toledo, Ohio, and reported
sales of $9.1 billion in 2004. Dana's Internet address is:
http://www.dana.com/. Forward-Looking Statements Statements in this
release which are not entirely historical constitute
"forward-looking" statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements
represent Dana's expectations based on our current information and
assumptions. However, forward-looking statements are inherently
subject to risks and uncertainties. The timing of Dana's filing of
the restated financial statements may differ from what is currently
expected. In addition, there can be no assurances regarding the
outcome of Dana's discussions with its bank groups regarding future
financing arrangements. Dana does not undertake to update any
forward-looking statements in this release.
http://www.newscom.com/cgi-bin/prnh/19990903/DANA
http://photoarchive.ap.org/ DATASOURCE: Dana Corporation CONTACT:
Michelle Hards of Dana Corporation, +1-419-535-4636, or Web site:
http://www.dana.com/ Company News On-Call:
http://www.prnewswire.com/comp/226839.html
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