On October 29th the Meso Blog reported on a proposed $2 million settlement of 7,500 personal injury claims by Ohio auto parts supplier, Dana Corp. As of June 30, 2007 the company, which is in Chapter 11 bankruptcy, was facing 150,000 asbestos-related injury claims, 7% of which alleged mesothelioma or cancer due to asbestos-containing automotive gaskets manufactured by the company. (See Proposed Settlement for 7,500 Dana Corp. Asbestos Claimants, posted 10/29/07). As part of its Chapter 11 reorganization plan, unsecured creditors would be able to recover between 72% to 86% of their claims.

In an update to that post, the Houston Chronicle reported today that an ad hoc committee representing asbestos-personal injury creditors in the Dana Corp. bankruptcy, filed papers with the U.S. Bankruptcy Court in Manhattan to have the 7,500 settlements thrown out unless Dana provides more details on the settlement agreements. According to the committee, the settlement proposal could provide more favorable treatment for asbestos creditors who settle their claims before the Chapter 11 reorganization plan is confirmed. Rather than merely rely on Dana Corp.'s description of the settlement details, the committee is seeking full disclosure of all settlement terms, and has asked the Court to delay the upcoming hearing on the proposed settlement, scheduled for this Thursday, pending its review of the settlements.