Dana Corp., a major auto parts supplier, said a judge signed an order confirming a reorganization plan that would allow the company to emerge from bankruptcy.
Dana, which sells brakes, axles and other parts to automakers such as General Motors Corp. and Ford Motor Co., said Wednesday that it expects to come out of bankruptcy next month. The order was signed by Judge Burton Lifland of the U.S. Bankruptcy Court for the Southern District of New York.
The company said its constituents identified, agreed on and won court approval for about $440 million to $475 million (euro305 million to euro330 million) in annual cost savings and revenue improvement.
The main pillars of Dana's plan include an investment from Centerbridge Capital Partners LP, a private equity firm, as well as agreements with labor unions.
Dana, based in Toledo, filed for bankruptcy in March 2006 amid pressure from big car makers to sell parts at lower prices. Dana employs about 35,000 people in 26 countries.
Its money-losing U.S. operations have prompted it to move manufacturing out of the U.S. to cut costs.
In July, the United Auto Workers and United Steelworkers agreed to a two-tier wage structure and to eliminate Dana's obligation to provide non-pension retiree benefits.