DURA Automotive's Chapter 11 Case in the United States Recognized as Main Proceedings by Ontario Superior Court of Justice
02 Novembre 2006 - 10:33PM
Business Wire
DURA Automotive Systems, Inc. (Nasdaq:DRRA), announced today that a
Canadian court, the Ontario Superior Court of Justice, entered a
�Foreign Recognition Order,� which recognized under Canadian law
the Chapter 11 bankruptcy proceedings commenced by DURA and its
U.S. and Canadian subsidiaries filed in the United States
Bankruptcy Court for the District of Delaware on October 30, 2006.
DURA�s European and other operations outside of the U.S. and
Canada, accounting for approximately 51% of DURA�s revenue, are not
part of the Chapter 11 proceedings nor are they part of the
Canadian Court proceedings. DURA�s European and other non-U.S. and
non-Canadian operations therefore remain unaffected by either
orders entered by the U.S. Bankruptcy Court or the Canadian Court�s
Foreign Recognition Order. In the Foreign Recognition Order, the
Canadian Court also: Granted a stay of all proceedings in Canada
against DURA and its U.S. and Canadian subsidiaries; Recognized the
U.S. Bankruptcy Court�s interim order authorizing DURA to access up
to $50�million of the approximately $300�million in
Debtor-in-Possession (DIP) financing from Goldman Sachs, GE Capital
and Barclays; Appointed RSM Richter Inc. as Information Officer for
Canadian stakeholders in respect of DURA�s Canadian recognition
proceedings; and Recognized all other �first day orders� of the
U.S. Bankruptcy Court that DURA submitted to the Ontario Court for
recognition. These other first day orders authorize DURA and its
U.S. and Canadian subsidiaries to: Pay employee salaries, wages and
benefits that accrued prior to the petition filing date; Pay
certain critical pre-petition filing date vendor claims and certain
claims of vendors whose goods were received within the 20-day
period prior to the petition filing date; Provide �adequate
assurance� to utilities in the form of a deposit equal to an
average of 2 weeks� worth of utilities� bills; Pay all �trust fund�
and similar taxes accruing prior to the petition filing date; and
Continue using the pre-petition cash management system. As has been
previously announced, DURA and its U.S. and Canadian subsidiaries
will be paying, in the ordinary course of business, all
post-petition employee, wages, salaries and benefits accruing on
and after the petition filing date. They will also be paying on a
going-forward basis, and in the ordinary course of business, all
vendors and service providers who provide goods and services to
them after the petition filing date. The Honorable Kevin J. Carey
of the U.S. Bankruptcy Court for the District of Delaware is
presiding over the Chapter 11 proceedings of DURA and its U.S. and
Canadian subsidiaries. The case number for the Chapter 11
proceedings is 06-11202. The Application Record filed in respect of
yesterday�s hearing and the Foreign Recognition Order will be
posted at www.rsmrichter.com. About DURA Automotive Systems, Inc.
DURA Automotive Systems, Inc., is a leading 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 leading supplier of similar
products to the recreation vehicle (RV) and specialty vehicle
industries. DURA sells its automotive products to every North
American, Japanese and European original equipment manufacturer
(OEM) and many leading Tier 1 automotive suppliers. DURA is
headquartered in Rochester Hills, Mich. Information about DURA and
its products is available on the Internet at www.duraauto.com.
Forward-looking Statements This press release, as well as other
statements made by DURA may contain forward-looking statements
within the �safe harbor� provisions of the Private Securities
Litigation Reform Act of 1995, that reflect, when made, the
company�s current views with respect to current events and
financial performance. Such forward-looking statements are and will
be, as the case may be, subject to many risks, uncertainties and
factors relating to the company�s operations and business
environment which may cause the actual results of the company to be
materially different from any future results, express or implied,
by such forward-looking statements. Factors that could cause actual
results to differ materially from these forward-looking statements
include, but are not limited to, the following: (i) the ability of
the company to continue as a going concern; (ii) the ability of the
company to operate pursuant to the terms of the
debtor-in-possession (�DIP�) financing facility; (iii) the
company�s ability to obtain court approval with respect to motions
in the chapter 11 proceeding prosecuted by it from time to time;
(iv) the ability of the company to develop, prosecute, confirm and
consummate one or more plans of reorganization with respect to the
Chapter�11 cases; (iv) risks associated with third parties seeking
and obtaining court approval to terminate or shorten the
exclusivity period for the company to propose and confirm one or
more plans of reorganization, for the appointment of a chapter 11
trustee or to convert the cases to chapter 7 cases; (v) the ability
of the company to obtain and maintain normal terms with vendors and
service providers; (vi) the company�s ability to maintain contracts
that are critical to its operations; (vii) the potential adverse
impact of the Chapter�11 cases on the company�s liquidity or
results of operations; (viii) the ability of the company to execute
its business plans, and strategy, including the operational
restructuring initially announced in February 2006, and to do so in
a timely fashion; (ix) the ability of the company to attract,
motivate and/or retain key executives and associates; (x) the
ability of the company to avoid or continue to operate during a
strike, or partial work stoppage or slow down by any of its
unionized employees; (x) general economic or business conditions
affecting the automotive industry (which is dependent on consumer
spending), either nationally or regionally, being less favorable
than expected; and (xi) increased competition in the automotive
components supply market. Other risk factors are listed from time
to time in the company�s United States Securities and Exchange
Commission reports, including, but not limited to the Annual Report
on Form 10-K for the year ended December�31, 2005. DURA disclaims
any intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
and/or otherwise. Similarly, these and other factors, including the
terms of any reorganization plan ultimately confirmed, can affect
the value of the company�s various pre-petition liabilities, common
stock and/or other equity securities. Additionally, no assurance
can be given as to what values, if any, will be ascribed in the
bankruptcy proceedings to each of these constituencies. A plan of
reorganization could result in holders of DURA�s common stock
receiving no distribution on account of their interest and
cancellation of their interests. Under certain conditions specified
in the Bankruptcy Code, a plan of reorganization may be confirmed
notwithstanding its rejection by an impaired class of creditors or
equity holders and notwithstanding the fact that equity holders do
not receive or retain property on account of their equity interests
under the plan. In light of the foregoing, the company considers
the value of the common stock to be highly speculative and cautions
equity holders that the stock may ultimately be determined to have
no value. Accordingly, the company urges that appropriate caution
be exercised with respect to existing and future investments in
DURA�s common stock or other equity interests or any claims
relating to pre-petition liabilities. DURA Automotive Systems, Inc.
(Nasdaq:DRRA), announced today that a Canadian court, the Ontario
Superior Court of Justice, entered a "Foreign Recognition Order,"
which recognized under Canadian law the Chapter 11 bankruptcy
proceedings commenced by DURA and its U.S. and Canadian
subsidiaries filed in the United States Bankruptcy Court for the
District of Delaware on October 30, 2006. DURA's European and other
operations outside of the U.S. and Canada, accounting for
approximately 51% of DURA's revenue, are not part of the Chapter 11
proceedings nor are they part of the Canadian Court proceedings.
DURA's European and other non-U.S. and non-Canadian operations
therefore remain unaffected by either orders entered by the U.S.
Bankruptcy Court or the Canadian Court's Foreign Recognition Order.
In the Foreign Recognition Order, the Canadian Court also: --
Granted a stay of all proceedings in Canada against DURA and its
U.S. and Canadian subsidiaries; -- Recognized the U.S. Bankruptcy
Court's interim order authorizing DURA to access up to $50 million
of the approximately $300 million in Debtor-in-Possession (DIP)
financing from Goldman Sachs, GE Capital and Barclays; -- Appointed
RSM Richter Inc. as Information Officer for Canadian stakeholders
in respect of DURA's Canadian recognition proceedings; and --
Recognized all other "first day orders" of the U.S. Bankruptcy
Court that DURA submitted to the Ontario Court for recognition.
These other first day orders authorize DURA and its U.S. and
Canadian subsidiaries to: -- Pay employee salaries, wages and
benefits that accrued prior to the petition filing date; -- Pay
certain critical pre-petition filing date vendor claims and certain
claims of vendors whose goods were received within the 20-day
period prior to the petition filing date; -- Provide "adequate
assurance" to utilities in the form of a deposit equal to an
average of 2 weeks' worth of utilities' bills; -- Pay all "trust
fund" and similar taxes accruing prior to the petition filing date;
and -- Continue using the pre-petition cash management system. As
has been previously announced, DURA and its U.S. and Canadian
subsidiaries will be paying, in the ordinary course of business,
all post-petition employee, wages, salaries and benefits accruing
on and after the petition filing date. They will also be paying on
a going-forward basis, and in the ordinary course of business, all
vendors and service providers who provide goods and services to
them after the petition filing date. The Honorable Kevin J. Carey
of the U.S. Bankruptcy Court for the District of Delaware is
presiding over the Chapter 11 proceedings of DURA and its U.S. and
Canadian subsidiaries. The case number for the Chapter 11
proceedings is 06-11202. The Application Record filed in respect of
yesterday's hearing and the Foreign Recognition Order will be
posted at www.rsmrichter.com. About DURA Automotive Systems, Inc.
DURA Automotive Systems, Inc., is a leading 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 leading supplier of similar
products to the recreation vehicle (RV) and specialty vehicle
industries. DURA sells its automotive products to every North
American, Japanese and European original equipment manufacturer
(OEM) and many leading Tier 1 automotive suppliers. DURA is
headquartered in Rochester Hills, Mich. Information about DURA and
its products is available on the Internet at www.duraauto.com.
Forward-looking Statements This press release, as well as other
statements made by DURA may contain forward-looking statements
within the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995, that reflect, when made, the
company's current views with respect to current events and
financial performance. Such forward-looking statements are and will
be, as the case may be, subject to many risks, uncertainties and
factors relating to the company's operations and business
environment which may cause the actual results of the company to be
materially different from any future results, express or implied,
by such forward-looking statements. Factors that could cause actual
results to differ materially from these forward-looking statements
include, but are not limited to, the following: (i) the ability of
the company to continue as a going concern; (ii) the ability of the
company to operate pursuant to the terms of the
debtor-in-possession ("DIP") financing facility; (iii) the
company's ability to obtain court approval with respect to motions
in the chapter 11 proceeding prosecuted by it from time to time;
(iv) the ability of the company to develop, prosecute, confirm and
consummate one or more plans of reorganization with respect to the
Chapter 11 cases; (iv) risks associated with third parties seeking
and obtaining court approval to terminate or shorten the
exclusivity period for the company to propose and confirm one or
more plans of reorganization, for the appointment of a chapter 11
trustee or to convert the cases to chapter 7 cases; (v) the ability
of the company to obtain and maintain normal terms with vendors and
service providers; (vi) the company's ability to maintain contracts
that are critical to its operations; (vii) the potential adverse
impact of the Chapter 11 cases on the company's liquidity or
results of operations; (viii) the ability of the company to execute
its business plans, and strategy, including the operational
restructuring initially announced in February 2006, and to do so in
a timely fashion; (ix) the ability of the company to attract,
motivate and/or retain key executives and associates; (x) the
ability of the company to avoid or continue to operate during a
strike, or partial work stoppage or slow down by any of its
unionized employees; (x) general economic or business conditions
affecting the automotive industry (which is dependent on consumer
spending), either nationally or regionally, being less favorable
than expected; and (xi) increased competition in the automotive
components supply market. Other risk factors are listed from time
to time in the company's United States Securities and Exchange
Commission reports, including, but not limited to the Annual Report
on Form 10-K for the year ended December 31, 2005. DURA disclaims
any intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
and/or otherwise. Similarly, these and other factors, including the
terms of any reorganization plan ultimately confirmed, can affect
the value of the company's various pre-petition liabilities, common
stock and/or other equity securities. Additionally, no assurance
can be given as to what values, if any, will be ascribed in the
bankruptcy proceedings to each of these constituencies. A plan of
reorganization could result in holders of DURA's common stock
receiving no distribution on account of their interest and
cancellation of their interests. Under certain conditions specified
in the Bankruptcy Code, a plan of reorganization may be confirmed
notwithstanding its rejection by an impaired class of creditors or
equity holders and notwithstanding the fact that equity holders do
not receive or retain property on account of their equity interests
under the plan. In light of the foregoing, the company considers
the value of the common stock to be highly speculative and cautions
equity holders that the stock may ultimately be determined to have
no value. Accordingly, the company urges that appropriate caution
be exercised with respect to existing and future investments in
DURA's common stock or other equity interests or any claims
relating to pre-petition liabilities.
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