Dana Holding Corporation Receives Stock Price Warning from NYSE

The NYSE issues the notices to companies whose stock price falls below $1.00 per share. If the price is not bolstered, the company could lose it's listing on the exchange.

In the last year, Dana's stock price has tumbled from $12.00 per share, and has been trading in the 1.50 - .50 range since mid November.

A large portion of Dana's business is sales to automobile manufacturers, a troubled industry treated warily by investors of late. Coupled with that, Dana's FY-2008 Revenue Outlook fell short of analysts expectations, placing further downward pressure on the stock.

The company has been fighting to avoid bankruptcy for several years, and is in the midst of a two year reorganization. In March of 2006, Dana and 40 of its subsidiaries filed Chapter 11 reorganization petitions. Dana Holding Corporation was formed as part of the reorganization.

In response to the warning notice, the company issued the following statement today:

TOLEDO, Ohio, Dec. 19 /PRNewswire-FirstCall/ -- Dana Holding Corporation announced it was notified today by the New York Stock Exchange (NYSE) that the company has fallen below its continued listing standards.

During a consecutive 30-day trading period - under NYSE rules - the average closing price of Dana's common stock must be a minimum of $1 per share and its market capitalization must equal or exceed $100 million.

Dana plans to notify the NYSE that it intends to resolve these matters. The company has six months to return its average share price above the required threshold, and 45 days to submit a plan demonstrating its ability to comply with the market capitalization standard. Under NYSE rules, Dana's common stock will continue to be listed on the exchange during this period, subject to ongoing monitoring and the company's compliance with other continued listing requirements.

Dana's operations, Securities and Exchange Commission reporting requirements, credit agreements, and other debt obligations are not otherwise affected by this NYSE notification.

In November, Dana announced it had reached an agreement with its lenders to restructure 1.3 billion dollars in loans. The news caused a brief uptick in the stock price, but it hasn't afforded any real market support.

Earlier this week, Dana announced plans stop production of GM parts at it's Longview plant until February 23rd, idling about 300 workers. The company said General Motors, one of it's largest buyers, was cutting production, bringing about the layoffs.

At it's peak, the plant employed between 500 and 600 people.