A firm that is representing a number of asbestos personal injury creditors in the United States has asked the courts to throw out around seven and a half thousand settlements from Dana Corp to asbestos creditors unless the corporation is prepared to provide additional details in the agreements, according to a recent report.
The settlements are part of Dana Corp’s bankruptcy, and papers were filed with the US Bankruptcy Court in Manhattan earlier in the week. Dana, which is an auto parts supplier, reached a deal to pay the seven and a half thousand asbestos creditors settlements totalling two million dollars.
The committee stated: “The ad hoc committee and other parties in interest are entitled to full disclosure of all of the terms of the proposed settlements by reviewing the actual settlement agreements and should not be limited to relying on Dana’s description of some of the terms of the settlements.”
The company sought Chapter 11 bankruptcy protection back in 2006, and is trying to move out of this protection plan through reorganization plans that may enable unsecured creditors to receive between seventy two and eighty six percent on their claims.