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I've been writing about this sham bankruptcy on the Ford, Dana, and GM boards. You're the first one to get the same feeling about it as I have. Here is a link to the news section on Dana's own site where they explain how they "lost" 1.3 billion

The company provided a valuation allowance, as announced on Oct. 10,
2005, against its net U.S. deferred tax assets during the third
quarter. The one-time impact of providing this allowance was a
reduction in net income of $918 million in the period, which represents
the restated net U.S. deferred tax assets at the beginning of the third
quarter and also includes $13 million for a similar allowance against
the company's U.K. tax assets. The valuation allowance was recorded
because, based on its current outlook, Dana believes it is no longer
more likely than not that the company will be able to utilize these tax
assets. This action does not affect the company's ability to use these
tax assets later if justified by future profitability in the U.S. and UK.

Most of the rest of the "loss" was attributed to this impairment charge for their INTENTION to divest some parts of the business

Additionally, on Oct. 20, 2005, the company announced its intention to
divest its non-core engine hard parts, fluid products, and pump
products businesses. An impairment charge to reduce the book value of
certain assets of these businesses of $275 million after tax was
recorded in the third quarter. Additional charges will be recorded in
the fourth quarter of 2005 in connection with the classification of
these businesses as discontinued operations.

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