Tower Automotive plan investor, lender expense payment cap increased to $2 million

By Caroline Salls

Pittsburgh, Dec. 21 - Tower Automotive, Inc. obtained court approval to increase the limit on reimbursement expenses being paid to potential plan of reorganization investors and lenders to $2 million from $1 million, according to a Thursday filing with the U.S. Bankruptcy Court for the Southern District of New York.

According to the motion, since the original order was entered, several parties have performed substantial due diligence and have incurred significant fees.

Since the equity investment being sought by the company is in the range of hundreds of millions of dollars, Tower said the parties must perform substantial due diligence to evaluate the investment.

As a result, the fees being incurred by the potential investors are collectively reaching the $1 million cap.

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