A committee representing asbestos-personal injury creditors in Dana Corp. s bankruptcy has asked a court to throw out the Toledo auto-parts supplier s settlements with 7,500 asbestos creditors unless the company provides more details on the agreements.
In papers filed with the U.S. Bankruptcy Court in Manhattan, the ad hoc committee said Dana s settlement proposal could provide for more favorable treatment for asbestos creditors who opt to settle their claims before the company s Chapter 11 reorganization plan is confirmed.
If the firm agrees to provide details, the committee asked the court to delay a hearing on the proposed settlement scheduled for Thursday. Dana reached a deal last month to pay 7,500 asbestos-personal injury claimants a total of $2 million. It has said asbestos-related personal-injury claims, which totaled 150,000 as of June 30, will pass through its bankruptcy unchanged.