Dana Corporation and two affiliates have entered into agreements with Hendrickson
Under terms of the agreements, the buyers will acquire certain assets located in
The assets are being sold for an aggregate price of approximately $38 million in cash and the buyer will assume certain liabilities related to the business.
The transactions are subject to the approval of the United States Bankruptcy Court for the Southern District of New York, which has jurisdiction over Dana’s Chapter 11 reorganisation proceedings.
Dana has filed a motion with the Bankruptcy Court seeking approval of procedures that will provide an opportunity for competitive bids on the trailer axle assets before the sale is approved by the court. Dana expects the bidding process to be completed and the sale to close in the fourth quarter of 2006.
Dana’s trailer products business employs approximately 180 people at two principal locations: Lugoff and Barrie. Under terms of the agreements with Hendrickson, approximately 90 employees, a commercial vehicle building, and trailer manufacturing assets at Lugoff will go to the buyer. In
Approximately 90 positions in
In conjunction with the asset purchase agreements, Bendix Spicer Foundation Brake, a joint venture in which Dana has an interest, has agreed to continue to supply Bendix brake systems to Hendrickson.