ROCHESTER HILLS, Mich. (AP) - Dura Automotive Systems Inc. said Tuesday that
its reorganization plan received court approval, clearing the way for the auto
supplier to emerge from Chapter 11 bankruptcy protection.
Dura said also recently obtained commitments for financing needed to fund
its emergence from Chapter 11.
When Dura emerges, debtor in possession claims, administrative expenses and
certain priority claims will receive cash. Holders of second lien debt will
receive new convertible preferred stock for their claims, the company said.
Senior notes and other general unsecured claims will receive 100 percent of
new common stock. The company's pre-bankruptcy subordinated notes, convertible
preferred securities and existing equity will not receive recoveries.
Dura filed for bankruptcy protection in October 2006 in the U.S. Bankruptcy
Court for the District of Delaware, blaming production cuts by major U.S.
automakers.
The company designs and manufactures driver control systems, such as pedals
and cables; seating control systems; automotive window glass; structural door
modules and exterior trim for vehicles.
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