DURA Receives Approval to Emerge from Chapter 11

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 Plan of Reorganization (the "Plan")

clearing the way for the Company to promptly emerge from Chapter 11.

Judge Kevin J. Carey ruled that DURA´s Plan

satisfied the requirements of the U.S. Bankruptcy Code and signed the

order confirming DURA´s Plan. The Company also

recently obtained commitments for financing required to fund its

emergence from Chapter 11.
"This is an exciting day for DURA and our

stakeholders, as we have reached our goal of reorganizing as a stronger

more competitive company," said Larry Denton

Chairman and Chief Executive Officer. "While

there is still work to be completed in our revitalization strategy, we

are already realizing favorable results from our operational

restructuring initiatives and our financial results continue to exceed

plan targets."
Denton continued, "The global automotive

industry continues to undergo a sweeping transformation, and DURA is now

well positioned to participate in its growth. We now have a much

stronger balance sheet, enabling the Company to better compete as a

global automotive supplier. Our financial restructuring complements the

significant operational accomplishments achieved over the last two years

to expand our presence in emerging regions while right-sizing our

overall manufacturing capacity to ensure best-in-cost production, and

continued high performance in product quality, delivery and innovation

for our customers."
Upon emergence, DIP claims, administrative expenses and certain priority

claims will receive cash. Holders of second lien debt will receive new

Convertible Preferred Stock on account of their claims. Senior Notes and

Other General Unsecured Claims will receive 100% of New Common Stock.

The Company´s pre-bankruptcy subordinated

notes, convertible preferred securities and existing equity will not

receive recoveries under the Plan. Upon emergence, DURA expects to be a

publicly reporting company under SEC rules.
DURA was advised by AlixPartners, Kirkland & Ellis and Miller Buckfire

in connection with its Chapter 11 reorganization.
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; (v) 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; (vi)

the ability of the Company to obtain and maintain normal terms with

vendors and service providers; (vii) the Company´s

ability to maintain contracts that are critical to its operations;

(viii) the potential adverse impact of the chapter 11 cases on the

Company´s liquidity or results of operations;

(ix) the ability of the Company to execute its business plans, and

strategy, and to do so in a timely fashion; (x) the ability of the

company to attract, motivate and/or retain key executives and

associates; (xi) 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; (xii) general economic or business conditions

affecting the automotive industry either nationally or regionally, being

less favorable than expected; and (xiii) 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.