Dana Corp., the bankrupt Toledo axle maker, won court approval yesterday of a settlement of a dispute with its largest supplier, Sypris Technologies Inc.
The contract with Sypris will save Dana about $23 million a year until it expires in 2014, David Heiman, a lawyer for the company, said.
Sypris agreed to reduce prices on parts it is making for Dana, produce some parts it wasn t already making, and allow Dana to obtain from other suppliers some parts that Sypris was making. The agreement was deemed an important leg of the stool in Dana s bid to emerge from bankruptcy, Mr. Heiman said.
Sypris, which shipped more than $200 million worth of products to Dana during 2006, will get an $89.9 million unsecured claim against Dana in the bankruptcy case.