The company and its lenders will finalize the lending agreements and close the loan facilities next Monday, November 27, 2006.
As part of the company’s first day motions granted on October 31, DURA received approval to access $50 million of its approximately $300 million in DIP financing. Access to the balance of the DIP facility was subject to the hearing held today by U.S. Bankruptcy Court for the District of Delaware. The Court’s approval today, allowing DURA full access to the DIP financing, ensures that DURA can fund normal business operations and continue its operational restructuring program, key goals of its Chapter 11 financial restructuring.
“We are pleased that we have accomplished our initial objectives to stabilize the company while entering Chapter 11,” said Larry Denton, chairman and chief executive officer of DURA Automotive Systems. “While there is much work to be done to complete our plan of reorganization, we are currently on schedule and confident in our strategy. The company’s primary focus has shifted back to running our business, delivering on our customer commitments and competing for new business.”
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DURA Automotive Receives Court Approval to Access Full Debtor-in-Possession Financing
Company Continues Normal Business Operations, Enhances Competitive Position DURA Automotive Systems, Inc. announced that it received Court approval for the $300 million Debtor-in-Possession (DIP) financing it arranged from Goldman Sachs, GE Capital and Barclays, as part of DURA’s Chapter 11 filing, which encompasses the company’s U.S. and Canadian subsidiaries.