Pay Plan at Dana Ruled Illegal

A plan to pay millions of dollars to the top officials of the Dana Corporation, the auto parts company, violates the new bankruptcy law and cannot go forward, a judge ruled yesterday.
Judge Burton R. Lifland of the Federal Bankruptcy Court in Manhattan said that the proposal was an illegal plan to retain Dana’s chief executive and other top executives. The plan had drawn objections from Dana’s creditors, shareholders and unions, as well as the United States trustee, a part of the Justice Department.