In October 2007, Dana Corporation reached a deal to pay 7,500 asbestos-personal injury claimants a total of $2 million to resolve their lawsuits stemming from the company’s asbestos-containing automotive gaskets. Dana sought Chapter 11 bankruptcy protection in 2006, makes axles, driveshafts and other parts. The Toledo, Ohio-based company is trying to exit bankruptcy protection under a reorganization plan that calls for unsecured creditors to recover between 72 percent and 86 percent on their claims. Dana has said asbestos-related personal-injury claims, which totaled 150,000 as of June 30, will pass through its bankruptcy unchanged. According to court papers, only about 7 percent of the asbestos claims filed against Dana allege mesothelioma or cancer.
A committee representing asbestos-personal injury creditors in Dana Corp.’s bankruptcy has asked a court to throw out the auto-parts supplier’s settlements with 7,500 asbestos creditors unless the company provides more details on the agreements. If Dana agrees to provide more details on the settlements, the committee asked the bankruptcy court to delay a hearing on the proposed settlement scheduled to give it time to review the settlements.