The 18-month timeline for emergence from bankruptcy presented by Dana management may be a shade optimistic, according to experts. In particular, potential roadblocks to a speedy resolution include the need to re-negotiate union contracts and get legacy costs under control, as well as trim excess capacity. Hmmm... where have we heard those problems before?
Muddying any assessments of Dana's predicament is the fact that it has yet to be determined which bankruptcy laws will be used to reorganize the company. The new guidelines concerning Chapter 11 supposedly speed up the process by limiting the amount of time companies can file restructuring plans.
Dana will likely have the opportunity to use the bankruptcy proceedings of Delphi and Tower Automotive as templates, although whether it'll want to go down the same path as either remains an open question, as the fate of both remain unresolved.
[Source: The Toledo Blade]