AUBURN HILLS–Dura Automotive Systems LLC, a designer and manufacturer of automotive products, announced that the U.S. Bankruptcy Court for the District of Delaware has granted funds managed by Bardin Hill Investment Partners LP and its affiliates approval to provide a $84 million debtor-in-possession financing facility to the company.
Proceeds from the financing will be used to fund Dura’s ongoing business operations, including capital expenditures for future platforms, and help the company meets its commitments to employees, customers, and vendors as it pursues a sale as a going concern.
The financing will allow Dura to continue business as usual while the expedited sale process takes place. Dura and its advisors will now conduct an accelerated marketing process over the coming weeks for a qualified purchaser that would agree to purchase all of Dura’s assets and assume all customer, trade, and employee obligations. Dura intends for any sale to close within approximately 120 days.
If a bidder is not found, Bardin Hill and existing creditors have committed to restructure Dura’s funded indebtedness pursuant to a chapter 11 plan of reorganization that would pay claims of customers, employees, and go-forward suppliers and trade vendors in full in cash at closing or in the ordinary course of business.
Bardin Hill is a New York City financing firm specializing in financing to distressed businesses.
Information about DURA and its products is available at www.duraauto.com.