Dana Corp., the automotive components manufacturer that is preparing to end its Chapter 11 bankruptcy, has altered the investment agreement reached in July that is making the reorganization possible. In changing that agreement with Centerbridge Capital Partners L.P., a private-equity group, Dana has rejected an investment proposal from a second group of investors, Appaloosa Management LP. Toledo, OH-based Dana has been in bankruptcy since March 2006, and says it expects to be reorganized by the end of this year. In September, Dana filed its reorganization plan with a federal court, detailing how creditors and stakeholders are to be credited in the new organization, and indicating Dana would have access to about $750 million by way of new preferred shareholders, including Centerbridge. Appaloosa already holds minority position in Dana, and in September it submitted an alternative investment proposal that includes a new equity investment, a credit facility, and unsecured notes. Dana said its board of directors had reviewed the Appaloosa offer and rejected it after discussions with various bankruptcy constituents. Now Dana indicates Centerbridge has committed to underwrite completely the purchase of $500 million in convertible preferred Series B shares, in addition to having an affiliate buy $250 million in convertible preferred Series A shares. Earlier, Centerbridge was to arrange for an affiliate buy up to $250 million of the Series B shares and find investors for the other $250 million shares. Centerbridge also agreed to an amendment to the Dana reorganization plan, to provide up to $40 million to some unsecured creditors who are not eligible to buy Series B shares. Dana agreed that it would not solicit or entertain proposals for any investments or reorganizations plan other than the Centerbridge investment. This further entails Dana relinquishing its right to terminate the Centerbridge agreement. These amendments are subject to bankruptcy court approval.