Tower Automotive suppliers' motion for official committee denied

By Caroline Salls

Pittsburgh, April 28 - Tower Automotive, Inc.'s automotive suppliers' motion for an official committee of automotive supplier creditors was denied in an order filed Thursday with the U.S. Bankruptcy Court for the Southern District of New York.

The request came on March 30 from ArvinMeritor, Inc., Robert Bosch Corp., Comau Pico, Delphi Corp., Denso International America, Inc., Visteon Corp. and Yazaki North America, Inc.

The suppliers said they wanted either a separate committee of automotive suppliers to be created or to have one or more of the seven automotive suppliers to be appointed to the current official committee of unsecured creditors. The suppliers represent more than $100 million of claims.

The suppliers added that they "lack an efficient and meaningful alternative" to participate in the bankruptcy cases.

The suppliers said the creditors committee would not adequately represent them because their interests are different from the bondholders and other groups since they continue to supply parts.

Tower Automotive, a Novi, Mich.-based maker of automotive assemblies, filed for Chapter 11 on Feb. 1. Its case number is 05-10578.

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