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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): SEPTEMBER 25, 2006
DURA AUTOMOTIVE SYSTEMS, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
DELAWARE 000-21139 38-3185711
(State or other jurisdiction of (Commission File Number) (IRS Employer Identification No.)
incorporation)
2791 RESEARCH DRIVE, ROCHESTER HILLS, MICHIGAN 48309
(Address of Principal Executive Offices, including Zip Code)
(248) 299-7500
(Registrant's Telephone Number, Including Area Code)
NOT APPLICABLE
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c)
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ITEM 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT
ITEM 2.01 COMPLETION OF ACQUISITION OR DISPOSITION OF ASSETS
On September 25, 2006 DURA Automotive Systems, Inc.'s (Nasdaq: DRRA)
wholly-owned subsidiary, DURA Automotive Systems Einbeck GmbH completed the sale
of all of the shares it held in DURA Automotive Systems Kohler GmbH to an entity
controlled by Hannover Finanz GmbH, headquartered in Hannover, Germany. The sale
agreement was executed on September 22, 2006, subject to the transfers of funds
which occurred on September 25, 2006. The Company received approximately $32.6
million in cash consideration for the sale. No continuing business relationship
exists between this former subsidiary and the Company. The divestiture is part
of DURA's evaluation of strategic alternatives for select German operations, as
previously announced on February 9, 2006.
The DURA Kohler business is based in Lippstadt, Germany, and is a
leading automotive supplier of decorative stainless and mild steel parts,
including components and assemblies for hinge and door reinforcements, fuel
systems, gear and steering assemblies and corrosion testing equipment.
ITEM 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT
On August 25, 2006, Dura Automotive Systems, Inc. ("Dura") reported
that the Compensation Committee of the Board of Directors ("Compensation
Committee") had approved a key employee incentive plan that provides for cash
awards to selected employees and selected executive officers based on the
achievement of operational restructuring goals under Dura's previously announced
operational restructuring programs. The plan provides that prorated payments
will be made as milestones to completion of the operational restructuring are
achieved as determined by the Compensation Committee. The maximum amount payable
under the plan is $6.8 million.
On September 25, 2006, the Compensation Committee approved the specific
operational goals under the plan, which include; (i) moving 2,000 jobs to low
cost countries, (ii) spend less than $100 million in cash capital and expense to
move the 2,000 jobs, (iii) eliminating 510 indirect position within a specified
time period and (iv) achieving personal performance goals in support of these
objectives. In addition, after reviewing the progress with respect to each of
these goals, the Compensation Committee approved a payment to participants under
the plan of an aggregate of $952,480.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
DURA AUTOMOTIVE SYSTEMS, INC.
Date: September 25, 2006 By: /s/ Keith R. Marchiando
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Keith R. Marchiando
Vice President, Chief Financial Officer
(principal accounting and financial
officer)
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