EXHIBIT 99.2
U.S. CONTACT EUROPEAN CONTACT
Ellen Gonda/Christina Stenson Michaela Hopkins
Brunswick Group Brunswick Group
+1-212-333-3810 +44 20 7404 5959
DURA@brunswickgroup.com
FOR IMMEDIATE RELEASE
DURA AUTOMOTIVE RECEIVES COURT APPROVAL OF FIRST DAY MOTIONS
Company Also Files Amended Affidavit to Reflect Company-Wide Cash
Position
Receives Approval to Access $50 Million of its Approximately $300
Million in Debtor-in-Possession Financing
ROCHESTER HILLS, Mich., October 31, 2006 - DURA Automotive Systems, Inc.
(Nasdaq: DRRA), announced today that it received Court approval of all of the
"first day motions" that DURA submitted as part of its filing for reorganization
under Chapter 11 of the United States Bankruptcy Code. Approval of these motions
will help DURA to continue to operate in the ordinary course of business during
the reorganization process.
In addition, DURA filed an amended affidavit today to reflect its company-wide
cash position of $75.8 million as of Oct. 13, 2006. The original affidavit only
stated liquidity for the company's U.S. and Canada subsidiaries, which were
included in the Chapter 11 filing, and did not include available cash from
DURA's European and other operations outside the U.S. and Canada, which were not
included in the filing.
As part of the first day motions granted today, DURA received approval to access
$50 million of the approximately $300 million in Debtor-in-Possession (DIP)
financing from Goldman Sachs, GE Capital and Barclays. Access to the balance of
the DIP facility is subject to approval at the final hearing scheduled for
November 20. DURA will use the DIP financing to fund normal business operations
and continue its operational restructuring program initiated in February 2006.
Among the other first day motions granted today, DURA received approval to:
- Continue to pay employee salaries, wages and benefits
- Pay certain critical pre-petition vendor claims after the filing and
continue to pay its post-petition obligations in the ordinary course
of business
- Provide "adequate assurance" to utilities
- Pay "trust fund" and similar taxes
- Continue using the pre-petition cash management system.
DURA's cases are being presided over by the Honorable Kevin J. Carey of the U.S.
Bankruptcy Court for the District of Delaware. DURA's consolidated case number
is 06-11202.
On Monday, October 30, DURA and its U.S. and Canadian subsidiaries filed for
protection under Chapter 11 of the U.S. Bankruptcy Code with the U.S. Bankruptcy
Court for the District of Delaware. DURA's European and other operations outside
of the U.S. and Canada, accounting for approximately 51% of DURA's revenue, are
not part of the filing.
ABOUT DURA AUTOMOTIVE SYSTEMS, INC.
DURA Automotive Systems, Inc., is a leading independent designer and
manufacturer of driver control systems, seating control systems, glass systems,
engineered assemblies, structural door modules and exterior trim systems for the
global automotive industry. The company is also a leading supplier of similar
products to the recreation vehicle (RV) and specialty vehicle industries. DURA
sells its automotive products to every North American, Japanese and European
original equipment manufacturer (OEM) and many leading Tier 1 automotive
suppliers. DURA is headquartered in Rochester Hills, Mich. Information about
DURA and its products is available on the Internet at www.duraauto.com.
Forward-looking Statements
This press release, as well as other statements made by DURA may contain
forward-looking statements within the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995, that reflect, when made, the company's
current views with respect to current events and financial performance. Such
forward-looking statements are and will be, as the case may be, subject to many
risks, uncertainties and factors relating to the company's operations and
business environment which may cause the actual results of the company to be
materially different from any future results, express or implied, by such
forward-looking statements. Factors that could cause actual results to differ
materially from these forward-looking statements include, but are not limited
to, the following: (i) the ability of the company to continue as a going
concern; (ii) the ability of the company to operate pursuant to the terms of the
debtor-in-possession ("DIP") financing facility; (iii) the company's ability to
obtain court approval with respect to motions in the chapter 11 proceeding
prosecuted by it from time to time; (iv) the ability of the company to develop,
prosecute, confirm and consummate one or more plans of reorganization with
respect to the Chapter 11 cases; (iv) risks associated with third parties
seeking and obtaining court approval to terminate or shorten the exclusivity
period for the company to propose and confirm one or more plans of
reorganization, for the appointment of a chapter 11 trustee or to convert the
cases to chapter 7 cases; (v) the ability of the company to obtain and maintain
normal terms with vendors and service providers; (vi) the company's ability to
maintain contracts that are critical to its operations; (vii) the potential
adverse impact of the Chapter 11 cases on the company's liquidity or results of
operations; (viii) the ability of the company to execute its business plans, and
strategy, including the operational restructuring initially announced in
February 2006, and to do so in a timely fashion; (ix) the ability of the company
to attract, motivate and/or retain key executives and associates; (x) the
ability of the company to avoid or continue to operate during a strike, or
partial work stoppage or slow down by any of its unionized employees; (x)
general economic or business conditions affecting the automotive industry (which
is dependent on consumer spending), either nationally or regionally, being less
favorable than expected; and (xi) increased competition in the automotive
components supply market. Other risk factors are listed from time to time in the
company's
United States Securities and Exchange Commission reports, including, but not
limited to the Annual Report on Form 10-K for the year ended December 31, 2005.
DURA disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information, future
events and/or otherwise.
Similarly, these and other factors, including the terms of any reorganization
plan ultimately confirmed, can affect the value of the company's various
pre-petition liabilities, common stock and/or other equity securities.
Additionally, no assurance can be given as to what values, if any, will be
ascribed in the bankruptcy proceedings to each of these constituencies. A plan
of reorganization could result in holders of DURA's common stock receiving no
distribution on account of their interest and cancellation of their interests.
Under certain conditions specified in the Bankruptcy Code, a plan of
reorganization may be confirmed notwithstanding its rejection by an impaired
class of creditors or equity holders and notwithstanding the fact that equity
holders do not receive or retain property on account of their equity interests
under the plan. In light of the foregoing, the company considers the value of
the common stock to be highly speculative and cautions equity holders that the
stock may ultimately be determined to have no value. Accordingly, the company
urges that appropriate caution be exercised with respect to existing and future
investments in DURA's common stock or other equity interests or any claims
relating to pre-petition liabilities.