Dura Automotive Systems Files for Chapter 11 Protection
Dura Automotive Systems, a leading supplier of pedal systems and other automotive components, has filed for Chapter 11 protection from creditors. The company received court approval of all its "first day motions," allowing it to continue operating in the ordinary course of business during the reorganization process. Dura's major customers include Ford, General Motors, Lear Corp., and Volkswagen.
Key Takeaways:
- Dura Automotive Systems, Inc. filed for Chapter 11 protection on October 30, 2006, with the U.S. Bankruptcy Court for the District of Delaware.
- The company received court approval of all its "first day motions," which will enable it to continue operating in the ordinary course of business during the reorganization process.
- Dura's European and other operations outside the U.S. and Canada, accounting for approximately 51% of the company's revenue, were not part of the filing.
- The company has $75.8 million in cash as of October 13, 2006, and has received approval to access $50 million of the approximately $300 million in Debtor-in-Possession (DIP) financing from Goldman Sachs, GE Capital, and Barclays.
- Dura will use the DIP financing to fund normal business operations and continue its operational restructuring program initiated in February 2006.
- The company's cases are being presided over by the Honorable Kevin J. Carey of the U.S. Bankruptcy Court for the District of Delaware.
- Dura's consolidated case number is 06-11202.
Statistics:
- Dura Automotive Systems has $75.8 million in cash as of October 13, 2006.
- The company has received approval to access $50 million of the approximately $300 million in Debtor-in-Possession (DIP) financing from Goldman Sachs, GE Capital, and Barclays.
- Dura's European and other operations outside the U.S. and Canada account for approximately 51% of the company's revenue.
Sources:
- Dura Automotive Systems, Inc. Press Release
- Bellwether Report
- M2 Communications Ltd