Tower Automotive letter-of-credit issuer Comerica replaced by Deutsche Bank

By Caroline Salls

Pittsburgh, May 18 - Tower Automotive Inc. got approval from the U.S. Bankruptcy Court for the Southern District of New York to replace Comerica Bank with Deutsche Bank as second-lien issuer of letters of credit on its pre-bankruptcy credit agreement, according to a Wednesday filing.

Deutsche Bank also received approval to issue replacement letters of credit.

Tower will pay Deutsche 0.125% quarterly on the outstanding undrawn or unpaid letters, as well as other fees and expenses.

Comerica said it would not renew its letters of credit soon after they were issued, prompting a search for a new issuer.

As of May 4, there were about $140 million in 16 undrawn and/or unpaid second-lien letters of credit under the facility, which are set to expire at various times throughout the year.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.