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 Disclosure Statement, solicitation procedures
and creditor ballots. In a hearing that took place today, the Court
determined that DURA's Disclosure Statement contains the necessary
information to enable creditors to vote on DURA's Plan of
Reorganization.
In addition, the Official Committee of Unsecured Creditors
supports confirmation of DURA's Plan and has filed a statement urging
creditors to vote to accept the Plan.
"This favorable Court decision and support from the Committee for
our plan to reorganize the Company, paves the way for DURA to exit
Chapter 11 this year as planned," said Larry Denton, Chairman and
Chief Executive Officer of Dura Automotive Systems. "We are looking
forward to completing the legal process and focusing all of our
resources on innovation and execution of our financial and operational
strategy to aggressively compete and grow in the global automotive
marketplace."
The Plan and Disclosure Statement provide details on how DURA
intends to treat claims against the Company and emerge from Chapter 11
protection in the fourth quarter of 2007. The Court's approval of the
Disclosure Statement enables DURA to begin sending its Plan of
Reorganization and Disclosure Statement to creditors to obtain their
vote on the Plan. The ruling today allows DURA's balloting agent to
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 Nov. 26, 2007, as the hearing date for
Plan confirmation. Once the Plan is confirmed and administrative
procedures are completed, DURA will officially emerge from Chapter 11.
DURA was advised by AlixPartners, Kirkland & Ellis and Miller
Buckfire in connection with its Chapter 11 reorganization.
No Solicitation
Neither the Disclosure Statement nor this press release are
solicitations for votes to accept the Plan. Parties should refer to
the Plan and the 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. The company
is also a leading supplier of similar products to the recreation
vehicle (RV) and specialty vehicle industries. 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
and recreation and specialty vehicle 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, 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.
