Billionaire financier Carl Ichan's quest for sway over 101-year-old axle maker Dana Corp. hit a road block Tuesday, June 20.
U.S. Bankruptcy Judge BurtonLifland delayed a hearing to set up rules for trading Dana's debt and stock until Aug. 9 -- a setback for Ichan's investment firm, American Real Estate Holdings LP, which owns at least $101.3 million in Dana debt.
The hearing was planned for Wednesday, June 28. It was also postponed April 4.
In court papers, American Real Estate argued the delay would put a "chill on the market" and possibly force equity holders to sell their stakes. Icahn, a longtime corporate raider, also has played an active role in the bankruptcy of auto parts supplier Federal-Mogul Corp.
Two other firms, Brandes Investment Partners LP and QVT Financial LP, had sought a delay for the hearing to allow for a yet-to-be appointed equity committee to participate in the trading order hearings. Court papers indicate they hold about 11 percent of Dana's common stock.
Dana, of Toledo, Ohio, filed for Chapter 11 bankruptcy protection in March in New York. It supplies axles, driveshafts, structures and related systems; sealing, thermal management, fluid transfer and engine power products; and chassis.
Dana ranks No. 6 on the Automotive News list of the 150 largest suppliers to North America with 2005 original-equipment auto parts sales of $5.43 billion.
You may e-mail Greg Migliore at [email protected]