Printer Friendly

Tower Automotive Receives Approval to Fully Access $725 Million Debtor-in-Possession Financing.

NOVI, Mich. -- Tower Automotive, Inc. announced that it received approval on February 28, 2005 from the U.S. Bankruptcy Court for the Southern District of New York to access the full amount of its $725 million debtor-in-possession financing 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, 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.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934 that are subject to risks and uncertainties. You should not place undue reliance on those statements because they only speak as of the date of this press release. Forward-looking statements include information concerning our possible or assumed future results of operations. These statements often include words such as "believe," "expect," "project," "anticipate," "intend," "plan," "estimate," or similar expressions. These statements are based on assumptions that we have made in light of our experience in the industry as well as our perceptions of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances. As you read and consider this press release, you should understand that these statements are not guarantees of performance or results. They involve risks, uncertainties and assumptions.

Although we believe that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect our actual financial results or results of operations and could cause actual results to differ materially from those in the forward-looking statements. These factors include: (i) the degree to which we are leveraged and our ability to generate sufficient cash flow from operations to meet our future liquidity needs; (ii) our reliance on major customers and selected vehicle platforms; (iii) the cyclicality and seasonality of the automotive market; (iv) our ability to obtain new business on new and redesigned models; (v) our ability to achieve the anticipated volume of production from new and planned supply programs; (vi) general economic or business conditions affecting the automotive industry (which is dependent on consumer spending), either nationally or regionally, being less favorable 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 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.
COPYRIGHT 2005 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2005, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

 Reader Opinion

Title:

Comment:



 

Article Details
Printer friendly Cite/link Email Feedback
Publication:Business Wire
Date:Mar 2, 2005
Words:606
Previous Article:MCF Corporation Closes Acquisition of Catalyst Financial Planning & Investment Management; First Step in MCF Corporation's Wealth Management Strategy...
Next Article:China's Moulin Global Eyecare Holdings Limited Completes Acquisition of Controlling Interest in Eye Care Centers of America.


Related Articles
Uniroyal Adhesives and Sealants.
Lenox Healthcare files Chapter 11.
Court approves Vencor's $100M DIP financing.
Vencor amends DIP financing, extends maturity to September.
Amcast files for Chapter 11 protection.

Terms of use | Copyright © 2014 Farlex, Inc. | Feedback | For webmasters