DURA leaves bankruptcy behind

DURA Automotive Systems, Inc. has emerged from Chapter 11 bankruptcy protection after creating a court-approved company reorganization process, including a new board of directors.

After 20 months under bankruptcy protection, DURA’s reorganization plan was approved in May by the U.S. Bankruptcy Court in Wilmington, Del.

“With a strengthened balance sheet and an improved operational footprint, DURA is well positioned in the global automotive supplier market. We will now be able to operate with greater efficiency and flexibility, devoting all of the Company’s focus and resources to developing and delivering innovative products to the benefit of our customers and all of our stakeholders,” says Larry Denton, DURA’s chairman and Chief Executive Officer.

Headquartered in Rochester Hills, Mich., DURA is a leading independent designer and manufacturer of driver and seating control systems and glass and exterior trim systems to North American, Asian and European manufacturers and suppliers.

Pacificor L.L.C.—a California-based hedge fund operator—will be the largest shareholder, controlling almost 40 percent of the company stock, which will trade over the counter.

The new seven-member Board of Directors is comprised of representatives with international, operational, financial and automotive industry expertise. Board members are:

1. Lawrence Denton, DURA CEO
2. Fred Bentley, chief operating officer of Hayes Lemmerz International
3. Steven J. Gilbert, senior managing director and chairman of Sun Group
4. Timothy Leuliette, chairman of the board for DURA and Leuliette Partners, LLC chairman and CEO
5. Andrew Mitchell, chief executive and chief investment officer for Pacificor LLC
6. Peter Reilly, president and chief operating officer of Strategic Industries, LLC
7. Jeffrey M. Stafeil, chief financial officer and board member for Germany-based Klöckner Pentaplast

DURA’s exit financing package comprises a $110 million revolving credit facility, a $50 million European first lien term loan and an approximate $84 million U.S. second lien term loan. Additionally, DURA entered into various European accounts receivable factoring facilities.

The exit financing facilities and cash from DURA’s balance sheet will help finance distributions, providing cash to holders of DIP facility claims, administrative expense claims, certain priority claims, and Canadian general unsecured claims. As existing DURA stock has been cancelled and no longer has value, other creditors receiving distributions will receive new equity in the reorganized company to satisfy claims.

For more information, visit DURA online.