Analysis of Claims Trading Order
Dana Corp. Bankruptcy
In proceedings in U.S. Bankruptcy Court in Manhattan, investor Carl Icahn’s effort to assert greater control over Dana Corp. was based, in part, on how a court-issued trading order impacted the market for the company’s debt. Attorneys for Dana Corp. asked Robert Noah of Cambridge Finance Partners to analyze the impact of a Bankruptcy Court issued claims trading order. Leading up to a scheduled hearing in August, 2006, Dr. Noah analyzed tick-by-tick trading in Dana Corp. bonds both before and after the issued trading order. In addition, he performed the same analysis for several comparable firms that had been through bankruptcy under claims trading orders. An agreement between Icahn’s group and Dana Corp. was reached shortly before the scheduled hearing.