Tower Automotive Receives Approval to Fully Access $725 Million Debtor-in-Possession Financing.
NOVI, Mich. -- Tower Automotive Tower Automotive Pink Sheets: TWRAQ is a manufacturer of automobile frames based in Novi, Michigan. The company is currently the world's largest manufacturer of vehicle frames. , Inc. announced that it received approval on February 28, 2005 from the U.S. Bankruptcy Court bankruptcy court n. the specialized Federal court in which bankruptcy matters under the Federal Bankruptcy Act are conducted. There are several bankruptcy courts in each state, and each one's territory covers several counties. for the Southern District of New York New York, state, United States
New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of to access the full amount of its $725 million debtor-in-possession financing Debtor-in-possession financing
New debt obtained by a firm during the Chapter 11 bankruptcy process, Federal Bankruptcy Rule 4001 (c)(1). This financing is unique because it is secured, that is, it has priority over existing debt, equity and other claims. provided by JPMorgan. As previously announced, the Company received approval to immediately access $125 million of the financing on February 3, 2005.
The Company said that it believes that this financing, in addition to normal cash flow, will be sufficient to fund its operating needs as it works to restructure its finances.
Kathleen Ligocki, President and Chief Executive Officer of Tower Automotive, said, "We are pleased to have received the Court's approval of this financing, which will enable Tower to continue operating normally as we work to restructure our finances. The financing is also a sign of confidence by our lenders in our ability to resolve the issues we face and ultimately emerge as a stronger, financially sound company."
About Tower Automotive
Tower Automotive, Inc. is a global designer and producer of vehicle structural components and assemblies used by every major automotive original equipment manufacturer, including BMW BMW
in full Bayerische Motoren Werke AG
German automaker. Founded as an aircraft engine manufacturer in 1916, the company assumed the name Bayerische Motoren Werke and became known for its high-speed motorcycles in the 1920s. , DaimlerChrysler, Fiat, Ford, GM, Honda, Hyundai/Kia, Nissan, Toyota, Volkswagen and Volvo. Products include body structures and assemblies, lower vehicle frames and structures, chassis modules and systems, and suspension components. Additional company information is available at www.towerautomotive.com.
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3. than expected; (vii) increased competition in the automotive components supply market; (viii) unforeseen problems associated with international sales, including gains and losses from foreign currency exchange; (ix) changes in general economic conditions in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and Europe; and (x) various other factors beyond our control. Except for our ongoing obligations to disclose material information as required by the federal securities laws, we do not have any obligation or intention to release publicly any revisions to any forward-looking statements to reflect events or circumstances in the future or to reflect the occurrence of unanticipated events.