DURA Automotive Systems, Inc. (Pink Sheets:DRRAQ) announced today
that it has completed the sale of its North American jack and tool kit
business to automotive supplier Autoline Industries Limited (BSE:
532797). The announcement came following approval by the Court to move
forward with the transaction. DURA had earlier announced the intent to
market the business as part of a corporate restructuring program.
DURA´s jack and tool kit business has one U.S. plant located in
Butler, Ind., where it employs approximately 140 people. With annual
revenues of approximately $25 million, DURA´s jack and tool kit
business produces automotive bottle jacks, scissor jacks and related
products for automotive jack tool kits. The jack and tool kit
business´ capabilities also include metal stamping, and powder coat
paint and assembly.
"The business has contributed nicely to DURA and offers attractive
growth prospects," said Larry Denton, chairman and chief executive
officer of DURA. "Selling this business will bring DURA closer to
achieving the company´s restructuring goals."
Customers of DURA´s jack and tool kit business include General
Motors, Nissan, Ford and Honda, among others.
"This is our second strategic acquisition in the United States
this year and now provides us with a manufacturing location that
complements our global engineering center in Troy, Michigan, and our
existing manufacturing locations in India," said Gopal Patwardhan,
chairman of Autoline. "We are excited with the enhanced ability to
service our global automotive and non-automotive customers."
On October 30, 2006, DURA Automotive Systems, Inc., and its
domestic and Canadian affiliates filed voluntary petitions for
protection under Chapter 11 of the Bankruptcy Code in the United
States Bankruptcy Court for the District of Delaware. On August 22,
2007, the company filed its Chapter 11 plan of reorganization and the
related disclosure statement. The company expects to exit Chapter 11
during the fourth quarter of 2007. DURA and its domestic and Canadian
affiliates continue to operate their businesses as Chapter 11
debtors-in-possession.
About Autoline Industries Ltd.
Autoline´s principal activities are manufacturing and designing of
auto components, sheet metal components, sub assemblies and
assemblies. Autoline manufactures various auto parts, sheet metal
components, silencers and exhaust systems for passenger cars, sports
utility vehicles, commercial vehicles, two wheelers, three wheelers
and tractors. It is one of the prime vendors to various automobile
companies such as TATA MOTORS (TELCO), Bajaj Auto, Kinetic, Mahindra &
Mahindra and others. Autoline Industries is a public limited company
traded on the Bombay stock exchange. More information is available at
www.autolineind.com
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.
