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January 17, 2008 |
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DURA AUTOMOTIVE: Wants to Move Plan-Filing Deadline to April 30 Dura Automotive Systems, Inc. and its debtor-affiliates ask the U.S. Bankruptcy Court for the District of Delaware to further extend the time within which they may file a plan of reorganization through and including April 30, 2008, and solicit votes to approve that plan through and including June 30, 2008. To recall, in late November 2007, the Debtors asked the Court to extend their Exclusive Periods through and including Jan. 31, 2008. Richard M. Cieri, Esq., at Kirkland & Ellis, LLP, in New York, however, says that the Debtors will not be able to confirm a reorganization plan before the January 31 deadline given that they are unable to obtain sufficient exit financing on acceptable terms in view of the tightening credit markets and a deteriorating outlook in the North American automotive sector. "Given the lack of acceptable exit financing options available under the terms of the current Plan, the Debtors are now faced with a tight timeline within which to renegotiate, draft, solicit, and confirm an alternative plan of reorganization, Mr. Cieri tells the Court. The Debtors anticipate that it will require 30 days or more to renegotiate an alternative reorganization plan and intend to mirror the negotiation process with parallel drafting of the amended plan and disclosure statement to minimize the lag time between reaching agreement with creditor constituencies on the structure of an amended plan and commencement of the solicitation process, Mr. Cieri adds. He asserts that the proposed April 30 deadline accounts for the length of time necessary for the Debtors to renegotiate a plan of reorganization, obtain approval of an amended disclosure statement, and solicit and confirm a substantially re-tooled reorganization plan. He tells the Court that the Debtors are currently engaged in revising their business plan and valuation to reflect economy changes. They are also renegotiating key Plan economic terms and are in active negotiations with their DIP lenders regarding the terms of their DIP Credit Facility that would extend through June 30, 2008. Mr. Samis assures the Court that the proposed extension is not intended to pressure the Debtors' creditors. He says the extension will ensure the integrity of the Debtors' restructuring efforts and ensure that they maintain the freedom to conduct fruitful negotiations with key creditor constituencies. Without an extension, the Debtors could be faced with unwarranted interference from a dissident party attempting to frustrate the consensual restructuring process, Mr. Samis asserts. The Court will convene a hearing of the Debtors' extension request on Jan. 29, 2008. By application of Rule 9006-2 of the Local Rules of Bankruptcy Practice and Procedures of the U.S. Bankruptcy Court for the District of Delaware, the Debtors' exclusive plan filing period is automatically extended through the conclusion of that hearing. About DURA Rochester Hills, Mich.-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. (Dura Automotive Bankruptcy News, Issue No. 43; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/ or 215/945-7000). |
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