ROCHESTER HILLS, MI -- DURA Automotive Systems, Inc. has announced that it has filed its plan of reorganization and the related disclosure statement with the U.S. Bankruptcy Court for the District of Delaware. The plan and disclosure statement provide details on how DURA intends to treat more than $1.3 billion of claims and emerge from Chapter 11 protection in the fourth quarter of 2007.

“Today represents another significant step towards achieving our goal of quickly emerging from Chapter 11 as a stronger, more competitive company,” said Larry Denton, chairman and chief executive officer of Dura Automotive Systems. "This plan lays the foundation for DURA to intensify its Global Automotive focus and deliver unrivaled value to our customers. A solid financial structure, attractive to both top industry talent and capital investments, will bolster our ability to offer breakthrough innovation and cost-competitive products."

DURA’s plan provides for creditor recoveries including cash payment in full of all allowed debtor-in-possession (DIP) claims, administrative expenses, priority claims and second lien secured claims; conversion of allowed senior notes and allowed general unsecured claims of more than $75,000 (other than trade claims) into between 57.4 percent to 60.7 percent of reorganized DURA’s new common stock; and cash payment in lieu of an equity distribution of all allowed trade claims and allowed general unsecured claims of $75,000 or less.

The plan further provides that there will be no recoveries for subordinated notes’ and convertible preferred securities’ claims, nor will the company’s common stock holders receive any recoveries. The plan will be partly funded through exit financing that the company intends to procure prior to emergence. Additional plan funding will come from a fully backstopped new money equity investment of between $140 million to $160 million in exchange for between 39.3 percent and 42.6 percent of reorganized Dura’s common stock. Senior notes claims holders that are accredited investors will be eligible to subscribe for their pro rata shares of the new money investment.