UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 30, 2007

Dana Corporation

(Exact name of registrant as specified in its charter)

Virginia		1-1063		34-4361040
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification Number)

4500 Dorr Street, Toledo, Ohio		43615
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (419) 535-4500

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o		Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o		Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o		Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o		Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

Item 7.01. Regulation FD Disclosure.

     On May 30, 2007, Dana Corporation (Dana) filed its unaudited Monthly Operating Report for the month ended April 30, 2007 with the United States Bankruptcy Court for the Southern District of New York (the Bankruptcy Court) (In re Dana Corporation, et al., Case No. 06-10354 (BRL)). A copy of this report is contained in the attached Exhibit 99.1.

     The Monthly Operating Report was prepared solely for the purpose of complying with the monthly reporting requirements of, and is in a format acceptable to, the Office of the United States Trustee, Southern District of New York, and it should not be relied upon for investment purposes. The Monthly Operating Report is limited in scope and covers a limited time period. The financial information that it contains is unaudited.

     The financial statements in the Monthly Operating Report are not prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). The Monthly Operating Report presents condensed financial information of Dana and its debtor and non-debtor subsidiaries, with Dana Credit Corporation (DCC) accounted for on an equity basis, rather than on a consolidated basis as required by GAAP.

     Readers should not place undue reliance upon the financial information in the Monthly Operating Report, as there can be no assurance that such information is complete. The Monthly Operating Report may be subject to revision. The information in the Monthly Operating Report should not be viewed as indicative of future results.

     Additional information about Dana’s filing under the Bankruptcy Code, including access to court documents and other general information about the Chapter 11 cases, is available online at http://www.dana.com/reorganization.

     The Monthly Operating Report is being furnished for informational purposes only and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as otherwise expressly stated in such filing. The filing of this Form 8-K shall not be deemed an admission as to the materiality of any information herein that is required to be disclosed solely by Regulation FD.

Item 9.01. Financial Statements and Exhibits.

     (d) Exhibits

 

Exhibit No.		Description
99.1		Dana Corporation’s Monthly Operating Report for the Month of April 2007 (furnished but not filed)

Signatures

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		Dana Corporation
		(Registrant)
Date: May 30, 2007		By: /s/ Kenneth A. Hiltz
				Kenneth A. Hiltz
				Chief Financial Officer

Exhibit Index

Exhibit No.		Description
99.1		Dana Corporation’s Monthly Operating Report for the Month of April 2007 (furnished but not filed).

Exhibit 99.1

JONES DAY
222 East 41st Street
New York, New York 10017
Telephone: (212) 326-3939
Facsimile: (212) 755-7306
Corinne Ball (CB 8203)
Richard H. Engman (RE 7861)

JONES DAY
North Point
901 Lakeside Avenue
Cleveland, Ohio 44114
Telephone: (216) 586-3939
Facsimile: (216) 579-0212
Heather Lennox (HL 3046)
Carl E. Black (CB 4803)
Ryan T. Routh (RR 1994)

JONES DAY
1420 Peachtree Street, N.E.
Suite 800
Atlanta, Georgia 30309-3053
Telephone: (404) 521-3939
Facsimile: (404) 581-8330
Jeffrey B. Ellman (JE 5638)

Attorneys for Debtors and Debtors in Possession

UNITED STATES BANKRUPTCY COURT
SOUTHERN DISTRICT OF NEW YORK

		:
In re		:		Chapter 11
		:
Dana Corporation, et al.,		:		Case No. 06-10354 (BRL)
		:
		:		(Jointly Administered)
Debtors.		:
		:

MONTHLY OPERATING REPORT FOR DANA CORPORATION AND ITS AFFILIATED DEBTORS FOR THE MONTH OF APRIL 2007

In re Dana Corporation, et al.
Case No. 06-10354 (BRL) (Jointly Administered)
Reporting Period: April 1, 2007 — April 30, 2007

Debtors:			Case Number:
Dana Corporation			06-10354
Dakota New York Corp			06-10351
Brake Systems, Inc.			06-10355
BWDAC, Inc.			06-10357
Coupled Products, Inc.			06-10359
Dana Atlantic, LLC			06-10360
Dana Automotive Aftermarket, Inc.			06-10362
Dana Brazil Holdings I, LLC			06-10363
Dana Brazil Holdings, LLC			06-10364
Dana Information Technology, LLC			06-10365
Dana International Finance, Inc.			06-10366
Dana International Holdings, Inc.			06-10367
Dana Risk Management Services, Inc.			06-10368
Dana Technology, Inc.			06-10369
Dana World Trade Corporation			06-10370
Dandorr L.L.C.			06-10371
Dorr Leasing Corporation			06-10372
DTF Trucking, Inc.			06-10373
Echlin-Ponce, Inc.			06-10374
EFMG, LLC			06-10375
EPE, Inc.			06-10376
ERS, LLC			06-10377
Flight Operations, Inc.			06-10378
Friction, Inc.			06-10379
Friction Materials, Inc.			06-10380
Glacier Vandervell, Inc.			06-10381
Hose & Tubing Products, Inc.			06-10382
Lipe Corporation			06-10383
Long Automotive, LLC			06-10384
Long Cooling, LLC			06-10385
Long USA, LLC			06-10386
Midland Brake, Inc.			06-10387
Prattville Mfg, Inc.			06-10388
Reinz Wisconsin Gasket, LLC			06-10390
Spicer Heavy Axle & Brake, Inc.			06-10391
Spicer Heavy Axle Holdings, Inc.			06-10392
Spicer Outdoor Power Equipment Components			06-10393
Torque-Traction Integration Technologies, LLC			06-10394
Torque-Traction Manufacturing Technologies, LLC			06-10395
Torque-Traction Technologies, LLC			06-10396
United Brake Systems, Inc.			06-10397

DANA CORPORATION, ET AL.
MONTHLY OPERATING REPORT
April 2007

Index

		Page
Financial Statements
Condensed Statement of Operations with Dana Credit Corporation (DCC) on an Equity Basis (Unaudited) — Month of April 2007 and for the Four Months Ended April 30, 2007			4
Condensed Balance Sheet with DCC on an Equity Basis (Unaudited) — April 30, 2007			5
Condensed Statement of Cash Flows with DCC on an Equity Basis (Unaudited) — Month of April 2007 and for the Four Months Ended April 30, 2007			6
Notes to Monthly Operating Report
Note 1. Basis of Presentation			7
Note 2. Reorganization Proceedings			9
Note 3. Financing			10
Note 4. Liabilities Subject to Compromise			12
Note 5. Reorganization Items			13
Note 6. Post-petition Accounts Payable			13
Schedules
Schedule 1. Cash Disbursements by Debtors			14
Schedule 2. Payroll Taxes Paid			15
Schedule 3. Post-petition Sales, Use and Property Taxes Paid			16

Other Information

While Dana Corporation (Dana) continues its reorganization under Chapter 11 of the United States Bankruptcy Code (the Bankruptcy Code), investments in Dana securities are highly speculative. Although shares of Dana common stock continue to trade on the OTC Bulletin Board under the symbol “DCNAQ,” the trading prices of the shares may have little or no relationship to the actual recovery, if any, by the holders under any eventual court-approved reorganization plan. The opportunity for any recovery by holders of Dana’s common stock under such reorganization plan is uncertain, and Dana’s shares may be cancelled without any compensation pursuant to such plan.

Case Number: 06-10354 (BRL) (Jointly Administered)

DANA CORPORATION
DEBTOR IN POSSESSION
CONDENSED STATEMENT OF OPERATIONS
WITH DCC ON AN EQUITY BASIS (UNAUDITED)

		Month Ended				Year to Date
		April 30, 2007				April 30, 2007
		(in millions)
Net sales		$	690			$	2,835
Costs and expenses
Cost of sales			660				2,703
Selling, general and administrative expenses			25				121
Realignment charges			142				161
Other income, net			17				59
Loss from operations			(120	)			(91	)
Interest expense (contractual interest of $16 in April and $61 year to date)			7				25
Reorganization items, net			12				49
Loss before income taxes			(139	)			(165	)
Income tax expense			18				33
Minority interest expense			1				4
Equity in earnings of affiliates			1				9
Loss from continuing operations			(157	)			(193	)
Loss from discontinued operations			(13	)			(69	)
Net loss		$	(170	)		$	(262	)

The accompanying notes are an integral part of the financial statements.

Case Number: 06-10354 (BRL) (Jointly Administered)

DANA CORPORATION
DEBTOR IN POSSESSION
CONDENSED BALANCE SHEET
WITH DCC ON AN EQUITY BASIS (UNAUDITED)

		April 30, 2007
		(in millions)
Assets
Current assets
Cash and cash equivalents		$	1,073
Accounts receivable
Trade			1,316
Other			288
Inventories			763
Assets of discontinued operations			211
Other current assets			146
Total current assets			3,797
Investments and other assets			1,002
Investments in equity affiliates			409
Property, plant and equipment, net			1,734
Total assets		$	6,942
Liabilities and Shareholders’ Deficit
Current liabilities
Debtor-in-posession financing		$	900
Notes payable, including current portion of long-term debt			95
Accounts payable			1,049
Liabilities of discontinued operations			136
Other accrued liabilities			766
Total current liabilities			2,946
Liabilities subject to compromise			4,341
Deferred employee benefits and other noncurrent liabilities			409
Long-term debt			14
Minority interest in consolidated subsidiaries			96
Total liabilities			7,806
Shareholders’ deficit			(864	)
Total liabilities and shareholders’ deficit		$	6,942

The accompanying notes are an integral part of the financial statements.

Case Number: 06-10354 (BRL) (Jointly Administered)

DANA CORPORATION
DEBTOR IN POSSESSION
CONDENSED STATEMENT OF CASH FLOWS
WITH DCC ON AN EQUITY BASIS (UNAUDITED)

		Month Ended				Year to Date
		April 30, 2007				April 30, 2007
		(in millions)				(in millions)
Operating activities
Net loss		$	(170	)		$	(262	)
Depreciation and amortization			24				93
Loss on sale of businesses							14
Non-cash portion of U.K. pension charge			61				68
Increase in working capital			(28	)			(83	)
Unremitted equity in earnings of affiliates			(1	)			(9	)
Other			3				29
Net cash flows used for operating activities			(111	)			(150	)
Investing activities
Purchases of property, plant and equipment			(11	)			(50	)
Proceeds from sale of assets			3				306
Other			(4	)			(4	)
Net cash flows provided by (used for) investing activities			(12	)			252
Financing activities
Net change in short-term debt			(1	)			66
Proceeds from DIP Credit Agreement							200
Net cash flows provided by (used for) financing activities			(1	)			266
Net increase (decrease) in cash and cash equivalents			(124	)			368
Cash and cash equivalents — beginning of period			1,197				705
Cash and cash equivalents — end of period		$	1,073			$	1,073

The accompanying notes are an integral part of the financial statements.

Case Number: 06-10354 (BRL) (Jointly Administered)

DANA CORPORATION, ET AL.
DEBTOR IN POSSESSION
NOTES TO MONTHLY OPERATING REPORT
(Dollars in millions)

Note 1. Basis of Presentation

General

     Dana and its consolidated subsidiaries are a leading supplier of axle, driveshaft, engine, structural, sealing and thermal products. Dana designs and manufactures products for every major vehicle producer in the world and is focused on being an essential partner to its automotive, commercial truck and off-highway vehicle customers.

     On March 3, 2006 (the Filing Date), Dana and forty of its wholly-owned domestic subsidiaries (collectively, the Debtors) filed voluntary petitions for reorganization under Chapter 11 of the Bankruptcy Code (the Bankruptcy Code) in the United States Bankruptcy Court for the Southern District of New York (the Bankruptcy Court). These Chapter 11 cases are being administered jointly under Case Number 06-10354 (BRL) and are collectively referred to as the “Bankruptcy Cases.” A listing of the Debtors and their respective case numbers is set forth at the beginning of this Monthly Operating Report. Neither DCC and its subsidiaries nor any of Dana’s non-U.S. subsidiaries are Debtors. See Note 2 for more information about the reorganization proceedings.

     This Monthly Operating Report has been prepared solely for the purpose of complying with the monthly reporting requirements applicable in the Bankruptcy Cases and is in a format acceptable to the Office of the United States Trustee for the Southern District of New York (the U.S. Trustee) and to the lenders under the DIP Credit Agreement which is discussed in Note 3. The financial information contained herein is limited in scope and covers a limited time period. Moreover, such information is unaudited and, as discussed below, is not prepared in accordance with accounting principles generally accepted in the United States (GAAP). Accordingly, this Monthly Operating Report should not be used for investment purposes.

Case Number: 06-10354 (BRL) (Jointly Administered)

Accounting Requirements

     The condensed financial statements herein have been prepared in accordance with the guidance in American Institute of Certified Public Accountants Statement of Position 90-7, “Financial Reporting by Entities in Reorganization under the Bankruptcy Code” (SOP 90-7), which is applicable to companies operating under Chapter 11. SOP 90-7 generally does not change the manner in which financial statements are prepared. However, it does require that the financial statements for periods subsequent to the filing of the Chapter 11 petition distinguish transactions and events that are directly associated with the reorganization from the ongoing operations of the business.

Financial Statements Presented

     The unaudited condensed financial statements and supplemental information contained herein present the condensed financial information of Dana and its Debtor and non-Debtor subsidiaries with DCC accounted for on an equity basis. Accordingly, intercompany transactions with DCC have not been eliminated in these financial statements and are presented as intercompany loans and payables. This presentation of condensed Dana financial statements with DCC on an equity basis, while consistent in format with the financial information required to be provided to the lenders under the DIP Credit Agreement and acceptable to the U.S. Trustee, does not conform to GAAP, which requires that DCC and its subsidiaries be consolidated along with Dana’s other majority-owned subsidiaries.

     For consolidated financial statements for Dana and its consolidated subsidiaries prepared in conformity with GAAP and the notes thereto, see Dana’s Annual Report on Form 10-K for the year ended December 31, 2006 (the 2006 Form 10-K) and Quarterly Report on Form 10-Q for the quarter ended March 31, 2007, which have been filed with the U.S. Securities and Exchange Commission.

     The condensed statements of operations and cash flows presented herein are for the month and the four months ended April 30, 2007. “Schedule 1. Cash Disbursements by Debtors” contains further information regarding cash disbursements made by each of the Debtors during the post-petition period of April 1, 2007 to April 30, 2007.

     The condensed financial statements presented herein with DCC accounted for on an equity basis have been derived from Dana’s internal books and records. They include normal recurring adjustments and adjustments that are consistent with those made for financial statements prepared in accordance with GAAP. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted.

     The financial information used in the preparation of this report was not subjected to the procedures customarily applied in the preparation of Dana’s quarterly or annual financial information prepared in accordance with GAAP. Accordingly, the financial information herein is subject to change and any such change could be material. The results of operations in this report are not necessarily indicative of results which may be expected for any other period or the full year and may not be representative of Dana’s consolidated results of operations, financial position and cash flows in the future.

Case Number: 06-10354 (BRL) (Jointly Administered)

Note 2. Reorganization Proceedings

     The Debtors are managing their businesses in the ordinary course as debtors in possession, subject to the supervision of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and the orders of the Bankruptcy Court.

     Official committees of the Debtors’ unsecured creditors and retirees not represented by unions have been appointed in the Bankruptcy Cases and, in accordance with the provisions of the Bankruptcy Code, have the right to be heard on all matters that come before the Bankruptcy Court. The Debtors are required to bear certain of the committees’ costs and expenses, including those of their counsel and other professional advisors. An official committee of Dana’s equity security holders was appointed and subsequently disbanded.

     The Debtors have received approval from the Bankruptcy Court to pay or otherwise honor certain of their pre-petition obligations, subject to certain restrictions, including employee wages, salaries, certain benefits and other employee obligations; claims of foreign vendors and certain suppliers that are critical to the Debtors’ continued operation; and certain customer program and warranty claims.

     Under the Bankruptcy Code, the Debtors have the right to assume or reject executory contracts (i.e., contracts that are to be performed by both contract parties after the Filing Date) and unexpired leases, subject to Bankruptcy Court approval and other limitations. In this context, “assuming” executory contracts or unexpired leases generally means that the Debtors will agree to perform their obligations and cure certain existing defaults under the contracts or leases and “rejecting” them means that the Debtors will be relieved of their obligations to perform further under the contracts or leases, which may give rise to an unsecured pre-petition claim for damages for the breach thereof. Since the Filing Date, the Bankruptcy Court has authorized the Debtors to assume or reject certain unexpired leases and executory contracts.

     The Debtors filed their initial schedules of assets and liabilities existing on the Filing Date with the Bankruptcy Court in June 2006 and amendments to certain of these schedules in July and November 2006. The Bankruptcy Court set September 21, 2006 as the general bar date (the date by which most entities that wished to assert a pre-petition claim against a Debtor had to file a proof of claim in writing). Asbestos-related personal injury and wrongful death claimants were not required to file proofs of claim by the bar date, and such claims will be addressed as part of the Chapter 11 proceedings. The Debtors are now in the process of evaluating, investigating and reconciling the claims that were submitted. The Debtors have objected to multiple claims and expect to file additional claim objections with the Bankruptcy Court. Pre-petition claims are recorded as liabilities subject to compromise. Amounts and payment terms for these claims, if applicable, will be established in connection with the Bankruptcy Cases. See Note 4 for more information about liabilities subject to compromise.

Case Number: 06-10354 (BRL) (Jointly Administered)

     In August 2006, the Bankruptcy Court entered an order establishing procedures for trading in claims and equity securities which is designed to protect the Debtors’ potentially valuable tax attributes (such as net operating loss carryforwards). Under the order, holders or acquirers of 4.75% or more of Dana stock are subject to certain notice and consent procedures prior to acquiring or disposing of Dana common shares. Holders of claims against the Debtors that would entitle them to more than 4.75% of the common shares of reorganized Dana under a confirmed plan of reorganization utilizing the tax benefits provided under Section 382(l)(5) of the Internal Revenue Code may be subject to a requirement to sell down the excess claims if necessary to implement such a plan of reorganization.

     The Debtors have the exclusive right to file a plan of reorganization in the Bankruptcy Cases until September 3, 2007.

Taxes

     Income taxes are accounted for in accordance with Statement of Financial Accounting Standards No. 109, “Accounting for Income Taxes.” Current and deferred income tax assets and liabilities are recognized based on events which have occurred and are measured by the enacted tax laws. Based on a history of losses in the U.S. and near-term prospects for continued losses, Dana established a 100% valuation allowance against its U.S. federal deferred tax assets in 2005. Deferred tax assets resulting from subsequent U.S. losses have been offset by increases in the valuation allowances, effectively eliminating the benefit of those losses.

     The Debtors have received Bankruptcy Court approval to pay pre-petition sales, use and certain other taxes in the ordinary course of their businesses. The Debtors believe that they have paid all pre-petition and post-petition taxes when due from before and after the Filing Date. See “Schedule 2. Payroll Taxes Paid” and “Schedule 3. Post-petition Sales, Use and Property Taxes Paid” for information regarding taxes paid. The Debtors believe that all tax returns are being prepared and filed when due, or extended as necessary, and that they are paying all post-petition taxes as they become due or obtaining extensions for the payment thereof.

Contractual Interest Expense

     Contractual interest expense includes amounts relating to debt subject to compromise which is no longer recognized in the statement of operations in accordance with SOP 90-7. The contractual interest that was not recognized was $9 for the month of April 2007 and $36 for the four months ended April 30, 2007.

Note 3. Financing

DIP Credit Agreement

     Dana, as borrower, and its Debtor U.S. subsidiaries, as guarantors, are parties to a Senior Secured Superpriority Debtor-in-Possession Credit Agreement (the DIP Credit Agreement) with Citicorp North America, Inc., as agent, initial lender and an issuing bank, and with Bank of America, N.A. and JPMorgan Chase Bank, N.A., as initial lenders and issuing banks. The DIP Credit Agreement, as amended, has been approved by the Bankruptcy Court. The aggregate amount of the facility is presently $1,550, including a $650 revolving credit facility (of which $400 is available for the issuance of letters of credit) and a $900 term loan facility. For a discussion of the terms of the DIP Credit Agreement, see Note 10 to the consolidated financial statements in Item 8 of the 2006 Form 10-K.

Case Number: 06-10354 (BRL) (Jointly Administered)

     In January 2007, Dana borrowed an additional $200 under the term loan facility. Based on its borrowing base collateral, Dana had availability under the DIP Credit Agreement at April 30, 2007 of $200 after deducting the $100 minimum availability requirement and $288 for outstanding letters of credit.

     The DIP Credit Agreement requires Dana and its direct and indirect subsidiaries, on a consolidated basis, to maintain as of the last day of each calendar month, a rolling 12-month cumulative EBITDAR beginning on March 31, 2007 and ending on February 28, 2008, at levels set forth therein. The EBITDAR requirement in the DIP Credit Agreement for the period from May 1, 2006 to April 30, 2007 was $175 and the actual EBITDAR for that period was $297. EBITDAR for the first four months of 2007 was calculated as follows:

EBITDAR Calculation

		For the				For the
		Month Ended				Four Months Ended
		April 30, 2007				April 30, 2007
		(in millions)				(in millions)
Net loss		$	(170	)		$	(262	)
Plus -
Interest expense			7				25
Income tax expense			18				33
Depreciation and amortization expense			24				93
Realignment charges			142				161
Reorganization items, net			12				49
Loss from discontinued operations			13				69
Minority interest			1				4
Less -
Equity in income of affiliates			1				9
Non-recurring items			11				28
Interest income			3				11
EBITDAR		$	32			$	124

     In April 2007, certain of Dana’s U.K. subsidiaries were released from any continuing obligations to four U.K. defined benefit pension plans in return for a cash payment of $93 and the transfer of a 33% equity interest in Dana’s remaining U.K. axle and driveshaft operating businesses for the benefit of the pension holders. As a result of this pension settlement, realignment charges in the above table includes $137 for April and $144 for the first four months of 2007 and loss from discontinued operations includes $17 for both periods.

Case Number: 06-10354 (BRL) (Jointly Administered)

Canadian Credit Agreement

     In June 2006, Dana Canada Corporation (Dana Canada), as borrower, and certain of its Canadian affiliates, as guarantors, entered into a Credit Agreement (the Canadian Credit Agreement) with Citibank Canada as agent, initial lender and an issuing bank, and with JPMorgan Chase Bank, N.A., Toronto Branch and Bank of America, N.A., Canada Branch, as initial lenders and issuing banks. The Canadian Credit Agreement provides a $100 revolving credit facility, of which $5 is available for the issuance of letters of credit. At April 30, 2007, based on Dana Canada’s borrowing base collateral, it had availability of $59 after deducting the $20 minimum availability requirement and $2 for currently outstanding letters of credit. Dana Canada had no borrowings under this agreement at April 30, 2007.

European Receivables Loan Facility

     In March 2007, certain of Dana’s European subsidiaries received a commitment from GE Leveraged Loans Limited for the establishment of a five-year accounts receivable securitization program, providing up to the euro equivalent of $225 in available financing. Under the financing program, certain of Dana’s European subsidiaries will sell accounts receivable to Dana Europe Financing (Ireland) Limited, a limited liability company incorporated under the laws of Ireland (an Irish special purpose entity). This entity, as borrower, will pledge those receivables as collateral for short-term loans from GE Leveraged Loans Limited, as administrative agent, and other participating lenders. The accounts receivable purchased by the Irish special purpose entity will be included in our consolidated financial statements because the Irish special purpose entity does not meet certain accounting requirements for treatment as a “qualifying special purpose entity” under GAAP.

Note 4. Liabilities Subject to Compromise

     As a result of the Chapter 11 filings, the Debtors’ pre-petition indebtedness is subject to compromise or other treatment under a plan of reorganization. SOP 90-7 requires that pre-petition liabilities subject to compromise be reported at the amounts expected to be allowed as claims, even if they may be settled for lesser amounts. The amounts currently classified as liabilities subject to compromise represent Dana’s estimate of known or potential pre-petition claims to be addressed in connection with the Bankruptcy Cases and include the liabilities subject to compromise of discontinued operations. Such claims remain subject to future adjustments resulting from, among other things, negotiations with creditors, rejection of executory contracts and unexpired leases and orders of the Bankruptcy Court. The terms under which any allowed pre-petition claims will be satisfied will be established by order of the Bankruptcy Court, including any order confirming a plan or plans of reorganization in the Bankruptcy Cases.

     The amount of liabilities subject to compromise reported herein was $4,341 at April 30, 2007. This amount includes an intercompany payable to DCC of $325 which is not eliminated under this basis of presentation. In addition, substantially all of the Debtors’ pre-petition debt is in default due to the bankruptcy filing, and Debtors’ pre-petition debt of $1,585 is also included in liabilities subject to compromise. At the Filing date, in accordance with SOP 90-7, Dana discontinued recording interest expense on debt classified as liabilities subject to compromise. Contractual interest on all debt, including the portion classified as liabilities subject to compromise, amounted to $16 and $61 for the one month and four months ended April 30, 2007.

Case Number: 06-10354 (BRL) (Jointly Administered)

Note 5. Reorganization Items

     SOP 90-7 requires that reorganization items, such as professional fees directly related to the process of reorganizing under Chapter 11 and provisions and adjustments to adjust the carrying value of certain pre-petition liabilities to their estimated allowable claim amounts, be reported separately. The Debtors’ reorganization expense items for the month of April 2007 consisted of professional fees partially offset by interest income.

     Pursuant to orders of the Bankruptcy Court, professionals retained by the Debtors and by the official statutory committees appointed in the Bankruptcy Cases are entitled to receive payment for their fees and expenses on a monthly basis, subject to compliance with certain procedures established by the Bankruptcy Code and orders of the Bankruptcy Court. In some cases, the professionals retained by the Debtors in the Bankruptcy Cases are also providing services to the Debtors’ non-Debtor subsidiaries and are being paid for such services by the non-Debtor subsidiaries. With respect to the Debtors’ foreign non-Debtor subsidiaries, payments for services to these entities in U.S. dollars are being made by the Debtors and reimbursed by the foreign non-Debtor subsidiaries through the ordinary course netting process established under the Debtors’ consolidated cash management system. In addition, under the terms of the DIP Credit Agreement, the Debtors are obligated to reimburse the lenders for the fees and expenses of their professionals. The Debtors are making the required payments to such professionals, as described above, and believe they are current with regard to such payments.

Note 6. Post-petition Accounts Payable

     The Debtors believe that all undisputed post-petition accounts payable have been and are being paid under agreed payment terms and the Debtors intend to continue paying all undisputed post-petition obligations as they become due. See “Schedule 1. Cash Disbursements by Debtors” for post-petition disbursements in April 2007.

Case Number: 06-10354 (BRL) (Jointly Administered)

In re Dana Corporation, et al.
Case No. 06-10354 (BRL) (Jointly Administered)		Schedule 1
Reporting Period: April 1, 2007 — April 30, 2007
Cash Disbursements by Debtors
(Dollars in 000s)

						April, 2007
Petitioning Entities:		Case Number:				Disbursements
Dana Corporation		06-10354				$	456,851
Dakota New York Corp		06-10351
Brake Systems, Inc.		06-10355
BWDAC, Inc.		06-10357
Coupled Products, Inc.		06-10359
Dana Atlantic, LLC		06-10360					2
Dana Automotive Aftermarket, Inc.		06-10362
Dana Brazil Holdings I, LLC		06-10363
Dana Brazil Holdings, LLC		06-10364
Dana Information Technology, LLC		06-10365
Dana International Finance, Inc.		06-10366
Dana International Holdings, Inc.		06-10367
Dana Risk Management Services, Inc.		06-10368					345
Dana Technology, Inc.		06-10369
Dana World Trade Corporation		06-10370
Dandorr L.L.C.		06-10371
Dorr Leasing Corporation		06-10372
DTF Trucking, Inc.		06-10373
Echlin-Ponce, Inc.		06-10374
EFMG, LLC		06-10375
EPE, Inc.		06-10376
ERS, LLC		06-10377
Flight Operations, Inc.		06-10378
Friction, Inc.		06-10379
Friction Materials, Inc.		06-10380
Glacier Vandervell, Inc.		06-10381					10
Hose & Tubing Products, Inc.		06-10382
Lipe Corporation		06-10383
Long Automotive, LLC		06-10384
Long Cooling, LLC		06-10385
Long USA, LLC		06-10386
Midland Brake, Inc.		06-10387
Prattville Mfg, Inc.		06-10388
Reinz Wisconsin Gasket, LLC		06-10390
Spicer Heavy Axle & Brake, Inc.		06-10391
Spicer Heavy Axle Holdings, Inc.		06-10392
Spicer Outdoor Power Equipment Components		06-10393
Torque-Traction Integration Technologies, LLC		06-10394
Torque-Traction Manufacturing Technologies, LLC		06-10395					120
Torque-Traction Technologies, LLC		06-10396
United Brake Systems, Inc.		06-10397
Total Cash Disbursements						$	457,328	(a)

In re Dana Corporation, et al.		Schedule 2
Case No. 06-10354 (BRL) (Jointly Administered)
Reporting Period: April 1, 2007 — April 30, 2007
Payroll Taxes Paid

(Dollars in 000s)

FEDERAL																TOTALS
Liabilities incurred or withheld
FIT				FICA-ER				FICA-EE				FUTA
$	6,248			$	3,733			$	3,733			$	890			$	14,604

Deposits released and pending
FIT				FICA-ER				FICA-EE				FUTA
$	(6,248	)		$	(3,733	)		$	(3,733	)		$	(890	)		$	(14,604	)

STATE																TOTALS
Liabilities incurred or withheld
SIT				SUI-ER				SUI-EE				SDI-EE
$	1,700			$	7,250			$				$				$	8,950

Deposits released and pending
SIT				SUI-ER				SUI-EE				SDI-EE
$	(1,700	)		$	(7,250	)		$				$				$	(8,950	)

LOCAL																TOTALS
Liabilities incurred or withheld
CIT
$	412															$	412

Deposits released and pending
CIT
$	(412	)														$	(412	)

In re Dana Corporation, et al.		Schedule 3
Reporting Period: April 1, 2007 — April 30, 2007
Case No. 06-10354 (BRL) (Jointly Administered)
Post-petition Sales, Use and Property Taxes Paid

(Dollars in 000s)
Tax Authority		State		Type of Tax		Taxes Paid
Arkansas Secretary of State		AR		Franchise		$	1
Boone County		KY		Business license			(A	)
City of Auburn Hills		MI		Property			23
City of Fulton		KY		Property			(A	)
City of Rochester Hills		MI		Property			46
Commonwealth of Pennsylvania		PA		Franchise			1
Delaware Secretary of State		DE		Miscellaneous			(A	)
Desoto County Collector		MS		Property			120
Florida Dept of Revenue		FL		Sales/use			14
Florida Secretary of State		FL		Annual Report			(A	)
Illinois Dept of Revenue		IL		Sales/use			6
Illinois Dept of Revenue		IL		Sales/use audit			19
Indiana Dept of Revenue		IN		Sales/use			18
Indiana Secretary of State		IN		Annual Report			(A	)
Indiana Secretary of State		IN		Miscellaneous			(A	)
Iowa Dept of Revenue		IA		Sales/use			2
Kansas Franchise Tax		KS		Franchise			1
Kansas Secretary of State		KS		Annual Report			(A	)
Kentucky Dept of Revenue		KY		Franchise			(A	)
Kentucky Dept of Revenue		KY		Sales/use			72
Kershaw County Treasurer		SC		Property			62
Louisiana Dept of Revenue		LA		Franchise			75
Lucas County Auditor		OH		Property			(A	)
Michigan Dept of Treasury		MI		Sales/use			21
Mississippi Secretary of State		MS		Annual Report			(A	)
Missouri Dept of Revenue		MO		Sales/use			10
Missouri Director of Revenue		MO		Franchise			9
Missouri Secretary of State		MO		Annual Report			(A	)
New Jersey Corporation Tax		NJ		Annual Report			(A	)
New Jersey Corporation Tax		NJ		Franchise			1
Noble County Treasurer		IN		Property			16
Oakland County Treasurer		MI		Property			6
Ohio State Treasurer		OH		Miscellaneous			1
Ohio State Treasurer		OH		Sales/use			142
Oklahoma Tax Commission		OK		Miscellaneous			5
Pennsylvania Dept of Revenue		PA		Sales/use			1
Pennsylvania Dept of Revenue		PA		Franchise			4
Pottstown Tax Collector		PA		Property			31
School District Tax		OH		Miscellaneous			(A	)
Smith County Trustee		TN		Property			29
South Carolina Dept of Revenue		SC		Sales/use			1
State of Michigan		MI		Miscellaneous			1
State of Michigan		MI		Income			12
State of New Jersey		NJ		Franchise			2
Tennessee Dept of Revenue		TN		Franchise			(A	)
Tennessee Dept of Revenue		TN		Sales/use			32
Tennessee Secretary of State		TN		Annual Report			(A	)
Texas Comptroller		TX		Sales/use			4
Toledo City Treasurer		OH		Miscellaneous			(A	)
United States Treasury				Miscellaneous			9
Virginia Dept of Taxation		VA		Sales/use			(A	)
Washington State Dept of Revenue		WA		Excise			4
Wisconsin Dept of Revenue		WI		Sales/use			1
						$	796

(A)-payment was less than one thousand dollars