Court Approves DURA Automotive Systems´ Revised Disclosure Statement
DURA Automotive Systems, Inc. (Pink Sheets: DRRAQ) today announced
that the U.S. Bankruptcy Court for the District of Delaware has
approved the company´s revised Disclosure Statement, solicitation
procedures and creditor ballots. In a hearing that took place today,
the Court determined that DURA´s revised Disclosure Statement contains
the necessary information to enable creditors to vote on DURA´s
revised Plan of Reorganization ("the Plan").
DURA´s revised Plan, filed on March 7, 2008, is supported by
DURA´s key creditor constituencies.
The Court´s approval of the Disclosure Statement enables DURA to
begin sending the revised Plan and Disclosure Statement to creditors
to obtain their vote on the Plan. In addition, DURA´s balloting
agent can soon begin distribution of ballots and accompanying support
materials to parties eligible to vote to accept or reject the Plan.
The Court also today set May 13, 2008, as the hearing date for
Plan confirmation. Once the revised Plan is confirmed and
administrative procedures are completed, DURA will officially emerge
from Chapter 11.
No Solicitation
Neither the Disclosure Statement nor this press release are
solicitations for votes to accept the Plan. Parties should refer to
the revised Plan and the revised Disclosure Statement for information
regarding the Plan, creditor recoveries contemplated thereby and other
related matters.
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. DURA markets
its automotive products to every North American, Asian 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 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 DIP Credit Agreement; (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, 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 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, those contained herein. 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.