Dura Automotive Systems files Chapter 11 plan based on proposed sale

By Caroline Salls

Pittsburgh, Jan. 21 – Dura Automotive Systems, LLC filed a Chapter 11 plan and related disclosure statement on Friday with the U.S. Bankruptcy Court for the District of Delaware.

The plan calls for a sale of substantially all of Dura’s assets. A liquidating trustee will be appointed to wind down Dura’s businesses and affairs, pay and reconcile claims in accordance with the plan and administer the plan.

According to the disclosure statement, the plan provides for the full resolution of all funded debt obligations and provides for 100% recoveries for holders of administrative claims, priority tax claims, debtor-in-possession facility claims, other priority claims and other secured claims.

Holders of general unsecured claims and affiliate claims will receive a distribution from a general unsecured claims amount, to the extent the claims are not assumed by the purchaser.

Any net cash sale proceeds remaining after general unsecured claims and affiliate claims are paid in full will be distributed to holders of Dura interests following an order directing that distribution.

All Section 510(b) claims will be cancelled without a distribution to holders.

The plan proposes to fund creditor recoveries from cash on hand, any sale proceeds, the general unsecured claims amount, a wind-down amount and any payments made directly by the purchaser.

Dura is an Auburn Hills, Mich.-based automotive parts maker. The company filed bankruptcy on Oct. 17, and the case was moved to the Delaware court under Chapter 11 case number 19-12378.

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