DURA AUTOMOTIVE: Committee Says Plan Patently Unconfirmable

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The Official Committee of Unsecured Creditors of Dura Automotive Systems, LLC, et al., submitted objections and reservation of rights to the adequacy of the information in the Debtors’ proposed Disclosure Statement.

The Disclosure Statement should not be approved for two reasons: (i) the Disclosure Statement does not contain adequate information; and (ii) the Sales have made the Plan patently unconfirmable.

The Committee points out that the Sales and the terms thereof are not adequately disclosed, nor is there a sufficient description of the Debtors’ remaining assets — certain claims and causes of action.

The Committee further points out that the Plan is patently unconfirmable because it diverges from the terms of the Sales approved by the Bankruptcy Court.

Counsel to the Official Committee of Unsecured Creditors:

Jennifer R. Hoover
Kevin M. Capuzzi
222 Delaware Avenue, Suite 801
Wilmington, DE 19801
Telephone: (302) 442-7010
Facsimile: (302) 442-7012

Counsel to the Official Committee of Unsecured Creditors:

Oscar N. Pinkas
Lauren Macksoud
1221 Avenue of the Americas
New York, NY 10020
Telephone: (212) 768-6700
Facsimile: (212) 768-6800

– and –

James R. Irving
April A. Wimberg
3500 PNC Tower
101 South Fifth Street
Louisville, Kentucky 40202
Telephone: (502) 587-3606
Facsimile: (502) 540-2215

About Dura Automotive Systems

Dura Automotive Systems, LLC, together with its affiliates, is an independent designer and manufacturer of automotive systems, including mechatronic systems, exterior systems, and lightweight structural systems, among others. It is nationally certified in the United States by the Women’s Business Enterprise Council, and operates 25 facilities in 13 countries throughout North America, South America, Europe and Asia. Headquartered in Auburn Hills, Mich., the company employs approximately 7,400 individuals.

Dura Automotive Systems sought protection under Chapter 11 of the Bankruptcy Code (Bankr. M.D. Tenn. Lead Case No. 19-06741) on Oct. 17, 2019.

At the time of the filing, the Debtors had estimated assets of between $100 million and $500 million and liabilities of between $100 million and $500 million.

The cases have been assigned to Judge Randal S. Mashburn.

The Debtors tapped Kirkland & Ellis LLP and Kirkland & Ellis International LLP as bankruptcy counsel; Bradley Arant Boult Cummings LLP as local counsel; Portage Point Partners, LLC as restructuring advisor; Jefferies LLC as financial advisor and investment banker; and Prime Clerk LLC as claims agent.

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