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March 26, 2008 |
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DURA AUTOMOTIVE: Reveals Liquidation Analysis Under Ch. 11 Plan DURA Automotive Systems, Inc., and its debtor affiliates prepared a liquidation analysis to create a reasonable good- faith estimate of the proceeds that might be generated if their estates were liquidated under Chapter 7 of the Bankruptcy Code. As reported in the Troubled Company Reporter on March 19, 2008, the Debtors filed an amended First Revised Joint Plan of Reorganization and Disclosure Statement explaining the Plan on March 13, 2008. The Hon. Kevin Carey of the U.S. Bankruptcy Court for the District of Delaware will convene a hearing on April 3, 2008, to determine whether the Disclosure Statement contains adequate information. Disclosure Statement Objections must be filed by March 28. The Debtors will begin soliciting votes on the Revised Plan upon approval of the Disclosure Statement. Pursuant to the liquidation analysis, if no Chapter 11 Plan is confirmed, the Debtors' Chapter 11 cases would be converted to cases under Chapter 7. In this event, a trustee will be appointed to liquidate the Debtors' assets. The Liquidation Analysis assumes that each of the Debtors' cases will convert to Chapter 7 on June 1, 2008. Liquidation Analysis Dura Automotive Systems, Inc. & affiliates As of June 1, 2007 (in thousands) Hypothetical Recovery Amount ---------------------------- Low High Midpoint -------- -------- -------- Cash and Cash Equivalents US$8,339 US$8,339 US$8,339 Accounts Receivable 64,980 74,939 69,960 Inventory 29,203 35,920 32,562 Plant, Property and Equipment, net 49,973 58,018 53,995 Other Assets 2,843 3,056 2,949 Preference Analysis 8,900 21,800 15,350 Intercompany Receivables 179,869 186,829 183,349 -------- -------- -------- Equity Value - Non-Debtors 200,030 211,871 205,951 -------- -------- -------- Total Proceeds from Assets 544,137 600,772 572,455 Costs Associated With Liquidation: Chapter 7 Trustee Fees 16,290 17,815 17,052 Other Professionals 7,200 5,400 6,300 Wind -Down Costs 15,960 15,420 15,690 -------- -------- -------- Total 39,450 38,635 39,042 Estimated Net Proceeds Available for Distribution US$504,687 US$562,138 US$533,412 DIP Facility Claims: DIP Revolver 44,680 44,680 44,680 DIP Term 151,500 151,500 151,500 Professional Fee Carve Out 13,000 13,000 13,000 -------- -------- -------- Total 209,180 209,180 209,180 Recovery Rate 100% 100% 100% -------- -------- -------- Estimated Net Proceeds Available for Distribution 295,507 352,958 324,232 Prepetition Secured Debt 228,589 228,589 228,589 Recovery Rate 100% 100% 100% -------- -------- -------- Estimated Net Proceeds Available for Distribution 66,919 124,369 95,644 Administrative Claims: Lease Rejection Claims 1,311 1,463 1,387 Post-Petition Trade Payables 30,839 34,413 32,626 Other Postpetition Liabilities 30,776 34,342 32,559 503(b)(9) 1,461 1,631 1,546 Intercompany Payables/Notes 2,471 2,757 2,614 Other 61 68 64 -------- -------- -------- Total 66,919 74,674 70,797 Recovery Rate 90% 100% 95% -------- -------- -------- Estimated Net Proceeds Available for Distribution - 49,695 24,847 Priority Prepetition Unsecured Claims: Tax obligations - 5,433 2,716 Other - 8 4 -------- -------- -------- Total - 5,441 2,721 Recovery Rate 0% 100% 50% -------- -------- -------- Estimated Net Proceeds Available for Distribution - 44,254 22,127 General Unsecured Claims: Rejection Damage Claims - 241 121 Prepetition Trade Payables - 1,099 550 Prepetition Intercompany Payables/Notes - 621 310 Pension Claims - 1,129 565 Senior Unsecured Notes - 15,761 7,881 Senior Subordinated Notes - 21,108 10,554 Convertible Trust Securities - 2,196 1,098 Employee Benefits - 1,364 682 Other - 734 367 -------- -------- -------- Total - 44,254 22,127 Recovery Rate 0.0% 3.8% 1.9% Senior Unsecured Notes - Including Subordinated Debt - 39,066 19,533 Proceeds 0.0% 9.3% 4.7% A full-text copy of the Liquidation Analysis is available for free at http://bankrupt.com/misc/DURALiquidationAnalysis.pdf About DURA Rochester Hills, Michigan-based DURA Automotive Systems Inc. (Nasdaq: DRRA) -- http://www.DURAauto.com/ -- is an 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 supplier of similar products to the recreation vehicle and specialty vehicle industries. DURA sells its automotive products to North American, Japanese and European original equipment manufacturers and other automotive suppliers. The company has three locations in Asia -- China, Japan and Korea. It has locations in Europe and Latin America, particularly in Mexico, Germany and the United Kingdom. The Debtors filed for chapter 11 petition on Oct. 30, 2006 (Bankr. D. Del. Case No. 06-11202). Richard M. Cieri, Esq., Marc Kieselstein, Esq., Roger James Higgins, Esq., and Ryan Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead counsel for the Debtors' bankruptcy proceedings. Mark D. Collins, Esq., Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of Richards Layton & Finger, P.A. Attorneys are the Debtors' co- counsel. Baker & McKenzie acts as the Debtors' special counsel. Togut, Segal & Segal LLP is the Debtors' conflicts counsel. Miller Buckfire & Co., LLC is the Debtors' investment banker. Glass & Associates Inc., gives financial advice to the Debtor. Kurtzman Carson Consultants LLC handles the notice, claims and balloting for the Debtors and Brunswick Group LLC acts as their Corporate Communications Consultants for the Debtors. As of July 2, 2006, the Debtor had US$1,993,178,000 in total assets and US$1,730,758,000 in total liabilities. The Debtors have asked the Court to extend their plan filing period to April 30, 2008. (Dura Automotive Bankruptcy News, Issue No. 49; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/ or 215/945-7000). |
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