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Rába business unaffected by Dana bankruptcy

Hungarian vehicle parts company Rába Nyrt said on Monday it would not be affected by an announcement on Friday by US peer Dana Corp., a big Rába customer, that it has filed for Chapter 11 bankruptcy in the US.  

Dana said its units in Europe were not included in the filing and are operating as normal. Dana said it had secured a $1.45 billion debtor-in-possession (DIP) financing facility from Citigroup, Bank of America, N.A., and JP Morgan Chase Bank to fund its continuing operations during the restructuring. Rába said Dana had already received court approval to use $800 million of the loan for operating costs and to pay suppliers. Rába's axle unit is a big supplier of Dana, with orders from the US company accounting for 13% of the unit's sales.