Tower Automotive requests 35-day exclusivity extension to finalize terms of equity investment

By Jennifer Lanning Drey

Portland, Ore., Oct. 13 - Tower Automotive, Inc. requested a 35-day extension to its exclusive periods to file a plan of reorganization and solicit votes on the plan, according to a Friday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The company wants to extend the plan filing period to Nov. 30 from Oct. 25 and the solicitation period to Jan. 25 from Dec. 26.

According to the motion, a fundamental aspect of Tower Automotive's plan of reorganization is an intercreditor agreement that is still being negotiated with its creditors committee.

The company also said its ability to successfully reorganize is dependent on obtaining an equity investment, possibly through a rights offering. However, the terms of the equity raise are still being negotiated.

A hearing has been scheduled for Oct. 24.

The Novi, Mich.-based auto parts maker filed for bankruptcy on Feb. 1, 2005. Its Chapter 11 case number is 05-10578.

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