Source: The Wall Street Journal
 
Auto supplier Dura Automotive Systems Inc., struggling with production cuts at General Motors Corp. and Ford Motor Co., heavy debt structure and rising commodity prices, hired Miller Buckfire & Co., a New York restructuring firm that has been involved in high-profile Chapter 11 filings. 
 
Dura, a Rochester Hills, Mich., maker of pedals, shift systems and other auto parts, retained Miller Buckfire last week to "help figure out and evaluate an appropriate way to reduce the debt burden," said spokesman Robert Mead. 
 
He said Dura has sufficient liquidity and isn't in violation of debt covenants. It has about $1.2 billion in debt. Asked if Dura was weighing a Chapter 11 filing, he said, "It's premature for us to speculate how we might seek a restructuring. We will sit down with our creditors and come up with a consensual restructuring." 
 
Dura, which has annual sales around $2.5 billion, employs about 16,000 world-wide. Mr. Mead said Dura wasn't looking to restructure debt with trade creditors. 
 
Dura is the latest example of the dire situation facing many auto suppliers. High raw-material costs, lower production from U.S. auto makers and debt from acquisitions have weighed heavily on several suppliers. Parts makers such as Delphi Corp., Dana Corp., Tower Automotive Inc. and Collins & Aikman Corp. are working through Chapter 11 restructurings. In February Dana hired Miller Buckfire less than a month before filing for Chapter 11 bankruptcy protection. 
 
Dura shares rose four cents, or 11%, to 41 cents in 4 p.m. Nasdaq Stock Market composite trading.