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.
