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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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SCHEDULE 13D/A
(Amendment No. 8)
Under the Securities Exchange Act of 1934
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DANA CORPORATION
(Name of Issuer)
Common Stock, $1.00 Par Value Per Share
(Title of Class of Securities)
235811106
(CUSIP Number)
--------------
with copies to:
Ken Maiman
Appaloosa Management L.P.
26 Main Street
Chatham, NJ 07928
(Name, Address and Telephone Number of Person
Authorized to Receive Notices of Communication)
October 10, 2007
(Date of Event Which Requires Filing of This Statement)
If the filing person has previously filed a statement on Schedule 13G to
report the acquisition which is the subject of this Schedule 13D, and is filing
this schedule because of Rule 13d-1(e), 13d-1(f) or 13d-1(g), check the
following box. [ ]
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Page 1 of 9
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CUSIP No. 235811106 13D
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- ----- --------------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
Appaloosa Investment Limited Partnership I
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
- ----- --------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [ ]
- ----- --------------------------------------------------------------------------
3 SEC USE ONLY
- ----- --------------------------------------------------------------------------
4 SOURCE OF FUNDS
OO
- ----- --------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEM 2(d) or 2(e) [ ]
- ----- --------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- ----- --------------------------------------------------------------------------
NUMBER OF SHARES 7 SOLE VOTING POWER
BENEFICIALLY OWNED 0
BY EACH REPORTING ----- ------------------------------------------------
PERSON WITH 8 SHARED VOTING POWER
11,992,500
----- ------------------------------------------------
9 SOLE DISPOSITIVE POWER
0
----- ------------------------------------------------
10 SHARED DISPOSITIVE POWER
11,992,500
- ----- --------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11,992,500
- ----- --------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
- ----- --------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
7.98%
- ----- --------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
PN
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Page 2 of 9
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CUSIP No. 235811106 13D
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- ----- --------------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
Palomino Fund Ltd.
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
- ----- --------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [ ]
- ----- --------------------------------------------------------------------------
3 SEC USE ONLY
- ----- --------------------------------------------------------------------------
4 SOURCE OF FUNDS
OO
- ----- --------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEM 2(d) or 2(e) [ ]
- ----- --------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
British Virgin Islands
- ----- --------------------------------------------------------------------------
NUMBER OF SHARES 7 SOLE VOTING POWER
BENEFICIALLY OWNED 0
BY EACH REPORTING ----- ------------------------------------------------
PERSON WITH 8 SHARED VOTING POWER
10,507,500
----- ------------------------------------------------
9 SOLE DISPOSITIVE POWER
0
----- ------------------------------------------------
10 SHARED DISPOSITIVE POWER
10,507,500
- ----- --------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
10,507,500
- ----- --------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
- ----- --------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
7.00%
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14 TYPE OF REPORTING PERSON
CO
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Page 3 of 9
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CUSIP No. 235811106 13D
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- ----- --------------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
Appaloosa Management L.P.
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
- ----- --------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [ ]
- ----- --------------------------------------------------------------------------
3 SEC USE ONLY
- ----- --------------------------------------------------------------------------
4 SOURCE OF FUNDS
AF
- ----- --------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEM 2(d) or 2(e) [ ]
- ----- --------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- ----- --------------------------------------------------------------------------
NUMBER OF SHARES 7 SOLE VOTING POWER
BENEFICIALLY OWNED 0
BY EACH REPORTING ----- ------------------------------------------------
PERSON WITH 8 SHARED VOTING POWER
22,500,000
----- ------------------------------------------------
9 SOLE DISPOSITIVE POWER
0
----- ------------------------------------------------
10 SHARED DISPOSITIVE POWER
22,500,000
- ----- --------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
22,500,000
- ----- --------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
- ----- --------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
14.98%
- ----- --------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
PN
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Page 4 of 9
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CUSIP No. 235811106 13D
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- ----- --------------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
Appaloosa Partners Inc.
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
- ----- --------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [ ]
- ----- --------------------------------------------------------------------------
3 SEC USE ONLY
- ----- --------------------------------------------------------------------------
4 SOURCE OF FUNDS
AF
- ----- --------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEM 2(d) or 2(e) [ ]
- ----- --------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- ----- --------------------------------------------------------------------------
NUMBER OF SHARES 7 SOLE VOTING POWER
BENEFICIALLY OWNED 0
BY EACH REPORTING ----- ------------------------------------------------
PERSON WITH 8 SHARED VOTING POWER
22,500,000
----- ------------------------------------------------
9 SOLE DISPOSITIVE POWER
0
----- ------------------------------------------------
10 SHARED DISPOSITIVE POWER
22,500,000
- ----- --------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
22,500,000
- ----- --------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
- ----- --------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
14.98%
- ----- --------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
CO
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Page 5 of 9
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CUSIP No. 235811106 13D
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- ----- --------------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
David A. Tepper
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
- ----- --------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [ ]
- ----- --------------------------------------------------------------------------
3 SEC USE ONLY
- ----- --------------------------------------------------------------------------
4 SOURCE OF FUNDS
AF
- ----- --------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEM 2(d) or 2(e) [ ]
- ----- --------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States of America
- ----- --------------------------------------------------------------------------
NUMBER OF SHARES 7 SOLE VOTING POWER
BENEFICIALLY OWNED 0
BY EACH REPORTING ----- ------------------------------------------------
PERSON WITH 8 SHARED VOTING POWER
22,500,000
----- ------------------------------------------------
9 SOLE DISPOSITIVE POWER
0
----- ------------------------------------------------
10 SHARED DISPOSITIVE POWER
22,500,000
- ----- --------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
22,500,000
- ----- --------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
- ----- --------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
14.98%
- ----- --------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
IN
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Page 6 of 9
This Amendment No. 8 (this "Amendment") to the Schedule 13D filed on June
22, 2007 by the Reporting Persons, as amended by Amendment No. 1 thereto filed
on June 29, 2007, by Amendment No. 2 thereto filed on July 19, 2007, by
Amendment No. 3 thereto filed on July 23, 2007, by Amendment No. 4 thereto filed
on July 26, 2007, by Amendment No. 5 thereto filed on August 22, 2007, by
Amendment No. 6 thereto filed on September 25, 2007, and by Amendment No. 7
thereto filed on October 5, 2007 (as so amended, the "Schedule 13D") relates to
the Common Stock of the Issuer and is being filed to amend the Schedule 13D as
specifically set forth below.
The information set forth in the Exhibit to this Amendment is hereby
expressly incorporated herein by reference, and the responses to each item of
this Amendment are qualified in their entirety by the provisions of such
Exhibit. Unless otherwise indicated, all capitalized terms shall have the
meanings ascribed to them in the Schedule 13D, and unless otherwise amended
hereby, all information previously filed remains in effect.
ITEM 4. IS AMENDED BY ADDING THE FOLLOWING:
On October 10, 2007, counsel to AMLP delivered, on behalf of AMLP, a letter
to counsel to the Issuer and counsel to the official committee of unsecured
creditors of the Issuer in reference to the Final Proposal and related
documentation submitted to the Issuer on September 21, 2007. A copy of that
letter is filed with this Amendment No. 8 as Exhibit 17 to the Schedule 13D.
While the Reporting Persons do not have any current plans or proposals,
except as otherwise described in the Schedule 13D or in the Exhibit to this
Amendment, which relate to or would result in any transaction, event or action
enumerated in paragraphs (a) through (j) of Item 4 of the form of Schedule 13D
promulgated under the Securities Exchange Act of 1934, as amended (the "Exchange
Act"), each of the Reporting Persons reserves the right, in light of its or his
ongoing evaluation of the Issuer's financial condition, business, operations and
prospects, the market price of the Common Stock, conditions in the securities
markets generally, general economic and industry conditions, its or his business
objectives and other relevant factors, to change its or his plans and intentions
at any time, as it or he deems appropriate. In particular, and without limiting
the generality of the foregoing, but subject to the terms of applicable court
orders, restrictions and agreements and to any limitations imposed by applicable
law, including the Exchange Act, each of the Reporting Persons (and their
respective affiliates) may (i) purchase additional shares of Common Stock or
other securities of or claims against the Issuer, (ii) sell or transfer shares
of Common Stock or other securities or claims beneficially owned by it or him
from time to time in public or private transactions and (iii) cause any of the
Reporting Persons to distribute in kind to their respective stockholders,
partners or members, as the case may be, shares of Common Stock or other
securities or claims owned by such Reporting Persons. The Reporting Persons may
seek the views of, hold discussions with, or respond to inquiries from members
of the Issuer's management or Board of Directors or other persons including
other stockholders, or holders of claims in the Issuer's bankruptcy proceedings,
regarding the Issuer's affairs, restructuring or other strategic matters.
Page 7 of 9
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS
Item 7 of the Schedule 13D is supplemented as follows:
EXHIBIT NO. DESCRIPTION
- ----------- -------------------------------------------------------------------
17 Letter from Counsel to Appaloosa Management L.P. to Counsel to the
Debtors and Counsel to the Official Committee of Unsecured
Creditors, dated October 10, 2007
Page 8 of 9
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
Dated: October 11, 2007
APPALOOSA INVESTMENT LIMITED
PARTNERSHIP I
By: APPALOOSA MANAGEMENT L.P.,
Its General Partner
By: APPALOOSA PARTNERS INC.,
Its General Partner
By: /s/ David A. Tepper
--------------------------
Name: David A. Tepper
Title: President
PALOMINO FUND LTD.
By: APPALOOSA MANAGEMENT L.P.,
Its Investment Adviser
By: APPALOOSA PARTNERS INC.,
Its General Partner
By: /s/ David A. Tepper
--------------------------
Name: David A. Tepper
Title: President
APPALOOSA MANAGEMENT L.P.
By: APPALOOSA PARTNERS INC.,
Its General Partner
By: /s/ David A. Tepper
--------------------------
Name: David A. Tepper
Title: President
APPALOOSA PARTNERS INC.
By: /s/ David A. Tepper
--------------------------
Name: David A. Tepper
Title: President
/s/ David A. Tepper
------------------------------
David A. Tepper
Page 9 of 9
Direct Dial+ tlauria@whitecase.com
October 10, 2007
Counsel to the Debtors
Jones Day
222 East 41st Street
New York, New York 10017
Phone: (212) 326-3939
Facsimile: (212) 755-7306
Attn: Corinne Ball, Esq.
(cball@jonesday.com)
Miller Buckfire & Co., LLC
250 Park Avenue, 19th Floor
New York, NY 10177
Phone: (212) 895-1818
Facsimile: (212) 895-1853
Attn: Richard Morgner
(richard.morgner@millerbuckfire.com)
Counsel to the Official Committee
of Unsecured Creditors
Kramer Levin Naftalis & Frankel LLP
1177 Avenue of the Americas
New York, NY 10036
Attn: Thomas Moers Mayer, Esq.
(tmayer@kramerlevin.com)
Attn: Matthew Williams, Esq.
(mjwilliams@kramerlevin.com)
Ladies and Gentlemen:
We write in regard to the Final Proposal submitted by Appaloosa
Management, LP ("Appaloosa") on September 21, 2007 in accordance with the terms
of the Order Pursuant to 11 U.S.C. Sections 1113 and 1114(e) and Federal Rule of
Bankruptcy Procedure 9019, Approving Settlement Agreements with The United
Steelworkers and United Autoworkers (collectively, the "Unions"), and Pursuant
to 11 U.S.C. Sections 105(a), 363(b), 364(c), 503 and 507, Authorizing the
Debtors to Enter into Plan Support Agreement, Investment Agreement and Related
Agreements, dated August 1, 2007 (the "Settlement Order").
We have been authorized by Appaloosa to reaffirm its outstanding offer
to replace Centerbridge Capital Partners, L.P. ("Centerbridge") as proposed
investor, as set forth in the Final Proposal, as subsequently modified by the
terms of the documentation submitted by Appaloosa to counsel to the debtors on
October 3, 2007 and October 8, 2007 (collectively, the "Proposal"), and as
further modified by the improvements and other modifications described herein
(as so modified, the "Enhanced Proposal").
EXTENSION OF DEADLINE
The Final Proposal's October 9, 2007 deadline for the approval of the
Final Proposal by the Unions is hereby extended until 5:00 p.m. (New York time)
on October 26, 2007; provided, that (1) the Board of Directors of the Company
(the "Board") shall have delivered to the Unions, with respect to the Enhanced
Proposal, the notice contemplated by paragraph 11 (g) of the Settlement Order,
with a copy to Appaloosa, prior to 5:00 p.m. (New York time) on October 12,
2007, and (2) the Company shall have adjourned the hearing on approval of its
Disclosure Statement to a date that accommodates completion of the
mediation/arbitration process contemplated by paragraph 11(h) of the Settlement
Order.
In addition, in the event that the Unions have withheld consent to the
Enhanced Proposal, then the Enhanced Proposal shall automatically be further
extended until 5:00 p.m. (New York time) on November 9, 2007, if prior to 5:00
pm (New York time) on October 26, 2007, the Company shall have commenced the
mediation/arbitration process contemplated by paragraph 11(h) of the Settlement
Order.
ELIMINATION OF CONDITION
Subject to the immediately preceding paragraph, we hereby eliminate
the Unions' approval of the Enhanced Proposal as a condition to the Enhanced
Proposal.
MODIFICATIONS TO DRAFT DEFINITIVE AGREEMENTS
In response to comments received from counsel to the Company on
October 10, 2007, in a document entitled "Key Issues," Appaloosa agrees to the
modifications as set forth on Schedule I to this letter. The documents will be
promptly revised to reflect these changes as soon as you communicate the
Company's preference regarding the governance alternatives set forth in Schedule
I.
CASH BONUS POOL FOR ELIGIBLE UNION EMPLOYEES
In addition to its commitment to purchase shares of Series A Preferred
Stock and to backstop the purchase of shares of Series B Preferred Stock as set
forth in the Proposal, Appaloosa will commit to purchase an additional number of
shares of Series A Preferred Stock,
2
for the purpose of funding an exit bonus pool for active Union employees, in an
aggregate amount equal to $1,000 per eligible Union employee, payable upon the
occurrence of the Effective Date.
* * * *
We are available to meet with you at your earliest convenience to
discuss more fully the matters set forth herein and to work toward an amicable,
appropriate conclusion to Dana's chapter 11 case.
Sincerely,
Thomas E. Lauria
3
SCHEDULE I
Proposed Modifications to Draft
Definitive Agreements
-------------------------------
1. Exceptions to Standstill. The draft Shareholders Agreement shall be
modified to provide that any exceptions to the standstill must be approved
by a majority of the Board, not including Purchaser Designees.
2. Governance Rights. As a preliminary matter, we draw your attention to the
fact that, in contrast to the Centerbridge proposal, where absent a proxy
fight Centerbridge controls the composition of the Company's Board of
Directors through its right to designate a majority of the members of the
Nominating and Governance Committee (a right Appaloosa eliminated from its
proposal), Appaloosa is not proposing to have direct control over the
composition of the Board of Directors. As such, it is Appaloosa's belief
that, as a total package, the governance and approval rights set forth in
the Enhanced Proposal are in fact less restrictive on the Company, and
provide Appaloosa with less control over governance matters than is
afforded to the Centerbridge documents. However, if the Company does not
agree with that position, Appaloosa will modify its documentation to
provide for a package of governance rights that is identical to those set
forth in the Centerbridge documentation.
Alternatively, Appaloosa offers the following further modifications and
clarifications:
o While Appaloosa believes the magnitude of its investment makes it
appropriate for Appaloosa to have the right to approve the CEO and
Executive Chairman, in that Appaloosa does not control the Nominating
and Governance Committee, and has only one seat on such committee,
Appaloosa does not have the right, acting alone, to nominate or select
such officers.
o No more than 3 directors may be elected by holders of the Series A
Preferred;
o Appaloosa's designees on the Board of Directors will resign, if so
requested by the other members of the Board of Directors, after
Appaloosa ceases to hold at least $125 million of Series A Preferred;
o Obligations regarding the nomination process shall be set forth in
Amended By-laws of the Company which shall become effective upon the
occurrence of the Effective Date;
o All of Appaloosa's approval and consultation rights, including the
right to approve the CEO and the Executive Chairman, fall away after
it ceases to hold at least $125 million of Series A Preferred; and
4
o Obligations with respect to the CEO will be covenants contained in the
employment agreement with the CEO, as opposed to obligations of the
Company under the Shareholders Agreement.
3. Control Premium. The Appaloosa documents will be revised to eliminate the
carve-out to the prohibition on receiving a control premium for
reimbursement of expenses and fees payable in an advisory/consultant role.
4. Investment Agreement Approval. The draft documents will be revised to
provide for approval of the Investment Agreement as part of the Disclosure
Statement hearing, rather than in a separate process.
5