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DURA Automotive Receives Court Approval to Access Full Debtor-in-Possession Financing.

Company Continues Normal Business Operations, Enhances Competitive Position

ROCHESTER HILLS, Mich. -- DURA Automotive Systems, Inc. announced today that it received Court approval for the $300 million Debtor-in-Possession (DIP) financing it arranged from Goldman Sachs, GE Capital and Barclays, as part of DURA's Chapter 11 filing, which encompasses the company's U.S. and Canadian subsidiaries. The company and its lenders will finalize the lending agreements and close the loan facilities next Monday, November 27, 2006.

As part of the company's first day motions granted on October 31, DURA received approval to access $50 million of its approximately $300 million in DIP financing. Access to the balance of the DIP facility was subject to the hearing held today by U.S. Bankruptcy Court for the District of Delaware. The Court's approval today, allowing DURA full access to the DIP financing, ensures that DURA can fund normal business operations and continue its operational restructuring program, key goals of its Chapter 11 financial restructuring.

"We are pleased that we have accomplished our initial objectives to stabilize the company while entering Chapter 11," said Larry Denton, chairman and chief executive officer of DURA Automotive Systems. "While there is much work to be done to complete our plan of reorganization, we are currently on schedule and confident in our strategy. The company's primary focus has shifted back to running our business, delivering on our customer commitments and competing for new business."

On Monday, October 30, DURA and its U.S. and Canadian subsidiaries filed for protection under Chapter 11 of the U.S. Bankruptcy Code with the U.S. Bankruptcy Court for the District of Delaware. DURA's European and other operations outside of the U.S. and Canada, accounting for approximately 51% of DURA's revenue, are not part of the filing. DURA's cases are being presided over by the Honorable Kevin J. Carey of the U.S. Bankruptcy Court for the District of Delaware. DURA's consolidated case number is 06-11202.

About DURA Automotive Systems, Inc.

DURA Automotive Systems, Inc., is a leading independent designer and manufacturer of driver control systems, seating control systems, glass systems, engineered assemblies, structural door modules and exterior trim systems for the global automotive industry. The company is also a leading supplier of similar products to the recreation vehicle (RV) and specialty vehicle industries. DURA sells its automotive products to every North American, Japanese and European original equipment manufacturer (OEM) and many leading Tier 1 automotive suppliers. DURA is headquartered in Rochester Hills, Mich. Information about DURA and its products is available on the Internet at www.duraauto.com.

Forward-looking Statements

This press release, as well as other statements made by DURA may contain forward-looking statements within the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, that reflect, when made, the company's current views with respect to current events and financial performance. Such forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the company's operations and business environment which may cause the actual results of the company to be materially different from any future results, express or implied, by such forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, the following: (i) the ability of the company to continue as a going concern; (ii) the ability of the company to operate pursuant to the terms of the debtor-in-possession ("DIP") financing facility; (iii) the company's ability to obtain court approval with respect to motions in the chapter 11 proceeding prosecuted by it from time to time; (iv) the ability of the company to develop, prosecute, confirm and consummate one or more plans of reorganization with respect to the Chapter 11 cases; (iv) risks associated with third parties seeking and obtaining court approval to terminate or shorten the exclusivity period for the company to propose and confirm one or more plans of reorganization, for the appointment of a chapter 11 trustee or to convert the cases to chapter 7 cases; (v) the ability of the company to obtain and maintain normal terms with vendors and service providers; (vi) the company's ability to maintain contracts that are critical to its operations; (vii) the potential adverse impact of the Chapter 11 cases on the company's liquidity or results of operations; (viii) the ability of the company to execute its business plans, and strategy, including the operational restructuring initially announced in February 2006, and to do so in a timely fashion; (ix) the ability of the company to attract, motivate and/or retain key executives and associates; (x) the ability of the company to avoid or continue to operate during a strike, or partial work stoppage or slow down by any of its unionized employees; (x) general economic or business conditions affecting the automotive industry (which is dependent on consumer spending), either nationally or regionally, being less favorable than expected; and (xi) increased competition in the automotive components supply market. Other risk factors are listed from time to time in the company's United States Securities and Exchange Commission reports, including, but not limited to the Annual Report on Form 10-K for the year ended December 31, 2005. DURA disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events and/or otherwise.

Similarly, these and other factors, including the terms of any reorganization plan ultimately confirmed, can affect the value of the company's various pre-petition liabilities, common stock and/or other equity securities. Additionally, no assurance can be given as to what values, if any, will be ascribed in the bankruptcy proceedings to each of these constituencies. A plan of reorganization could result in holders of DURA's common stock receiving no distribution on account of their interest and cancellation of their interests. Under certain conditions specified in the Bankruptcy Code, a plan of reorganization may be confirmed notwithstanding its rejection by an impaired class of creditors or equity holders and notwithstanding the fact that equity holders do not receive or retain property on account of their equity interests under the plan. In light of the foregoing, the company considers the value of the common stock to be highly speculative and cautions equity holders that the stock may ultimately be determined to have no value. Accordingly, the company urges that appropriate caution be exercised with respect to existing and future investments in DURA's common stock or other equity interests or any claims relating to pre-petition liabilities.
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Date:Nov 21, 2006
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