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May 25, 2007

Dana Granted Stay to Appeal $43.9 Million Verdict

Filed under: Dana Corporation — admin @ 12:23 pm

Bankruptcy Judge Burton Lifland has lifted a stay on litigation in Dana Corp.’s chapter 11 case to allow the auto parts maker to fight a $43.9 million product liability verdict, Bankruptcy Law360 reported yesterday. The ruling also allows Dana to seek a secondary appellate review by the Supreme Court of Texas, if necessary, but does not clear the company to seek recovery on Microtherm’s $70.8 million claim, or any other claim against the bankrupt company, the Manhattan bankruptcy judge noted. Dana filed its request for relief on May 3 in the U.S. Bankruptcy Court for the Southern District of New York, arguing the company’s pursuit of an appeal might benefit the bankruptcy proceedings. If the appeal is successful, the ruling would eliminate a $70.8 million claim in the bankruptcy proceedings filed by Microtherm Inc., the plaintiff in the product liability case, Dana said.

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