Source: Company Press Release
 
DURA Automotive Systems, Inc. announced today that it has successfully emerged from Chapter 11 bankruptcy protection.  The company officially concluded its Chapter 11 reorganization process after meeting all statutory requirements of its Revised Joint Plan of Reorganization (the “Plan”), including successfully closing their exit financing facilities and filing associated documentation.  In conjunction with its emergence, the Company also announced its new board of directors.
 
“Today marks a fresh start for DURA,” said Larry Denton, Chairman and Chief Executive Officer of DURA.  “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.”
 
Financial Information and New Capital Structure
 
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.  In addition to its exit financing facilities, DURA entered into various European accounts receivable factoring facilities totaling approximately €63 million.
 
These exit financing facilities, together with cash from DURA’s balance sheet, will be used in part to finance distributions under the Plan, providing cash to holders of DIP facility claims, administrative expense claims, certain priority claims, and Canadian general unsecured claims.  Other creditors receiving distributions under the Plan will receive new equity in the reorganized company to satisfy claims.  Effective today, existing DURA stock has been cancelled and will no longer have value.
 
“This transaction has significantly strengthened Dura’s capital structure by reducing total net debt from over $1.3 billion to approximately $180 million, which will significantly reduce the Company’s interest expense,” said Nick Preda, Dura’s CFO.
 
DURA was advised by AlixPartners, Kirkland & Ellis and Miller Buckfire in connection with its Chapter 11 reorganization.