This can't be good....
Dura Automotive Systems files for bankruptcy in Delaware
Posted Monday, October 30, 2006 at 9:25 am
ROCHESTER HILLS, Mich. — Auto parts supplier Dura Automotive Systems Inc. said today that its U.S. and Canadian subsidiaries have filed for bankruptcy protection amid production cuts by major U.S. automakers.
Dura joins a growing list of suppliers forced to make major restructuring moves because of the slumping U.S. auto industry. The Big Three continue to press suppliers for cost cuts in the face of intense competition from Asian car companies.
The Chapter 11 filing was made with U.S. Bankruptcy Court for the District of Delaware, the Rochester Hills-based company said. Its European and other operations outside the U.S. and Canada weren’t part of the filing.
Dura’s biggest customers include General Motors Corp., Ford Motor Co., DaimlerChrysler AG and Volkswagen AG. It designs and manufactures driver control systems, such as pedals and cables; seating control systems; automotive window glass; structural door modules and exterior trim for vehicles.
“With industry conditions tightening further, we concluded that our capital structure is no longer appropriate,” Larry Denton, chairman and chief executive of Dura Automotive Systems, said in a statement.
As part of the filing, Dura said it has arranged for about $300 million in debtor-in-possession financing, which will be used to fund normal operations and continue a restructuring initiated in February.
“Pursuing a financial reorganization under court protections is the prudent course of action and positioning us for long-term sustainability,” Denton said. “This is in the best interest of our employees, customers, vendors and other business partners.”
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