The Dana Corp. announced today that vice president and CFO Robert C. Richter has retired from the company. Richter joined Dana in 1974 and was appointed CFO in 1999.
This news follows on the heels of Dana's announcement on March 3 that it had filed for Chapter 11. Dana and 40 of its U.S. subsidiaries filed voluntary petitions for reorganization under Chapter 11 in the U.S. Bankruptcy Court in New York on Friday. The company's European, South American, Asia-Pacific, Canadian and Mexican subsidiaries are not included in the bankruptcy filing.
In a statement on March 3 the company explained its actions. "Dana has faced a continued decline in revenues resulting from the decreasing market share and production levels of its largest domestic customers, along with sharp increases in commodity and energy prices that have outpaced the cost savings Dana has been able to achieve. The general financial condition of the industry, together with Dana's inability to renew or expand its credit facilities in a timely manner, has significantly constrained Dana's liquidity," the statement said.
Dana Chairman and Chief Executive Officer Michael J. Burns said, "The Chapter 11 process provides the company an opportunity to fix our business comprehensively -- financially and operationally. This will be fundamental change, not just incremental improvement. The Chapter 11 process allows us to continue normal business operations, while we restructure our debt and other obligations and enhance performance."
The Toledo, Ohio-based maker of axles, transmissions and other auto components said it had obtained $1.45 billion in special debtor financing from Citigroup, Bank of America and JP Morgan Chase Bank to continue operations during the reorganization.
Mr. Burns said Dana intends to proceed with its previously announced divestiture and restructuring plans, which include the sale of several non-core businesses and the closure of several facilities and shift of production to lower-cost locations. In addition, Dana will continue to take steps to reduce costs, increase efficiency, and enhance productivity, he said.
Copyright Agence France-Presse, 2006
IndustyWeek Staff also contributed to this report.
