Posted: May 14, 2008

From aftermarketNews Staff & Wire Reports

ROCHESTER HILLS, Mich. -- The U.S. Bankruptcy Court for the District of Delaware has approved Dura Automotive’s Plan of Reorganization, clearing the way for the company to promptly emerge from Chapter 11. The company also recently obtained commitments for financing required to fund its emergence from Chapter 11.

“This is an exciting day for DURA and our stakeholders, as we have reached our goal of reorganizing as a stronger, more competitive company,” said Larry Denton, chairman and chief executive officer. “While there is still work to be completed in our revitalization strategy, we are already realizing favorable results from our operational restructuring initiatives and our financial results continue to exceed plan targets.”

Denton continued, “The global automotive industry continues to undergo a sweeping transformation, and DURA is now well positioned to participate in its growth. We now have a much stronger balance sheet, enabling the Company to better compete as a global automotive supplier. Our financial restructuring complements the significant operational accomplishments achieved over the last two years to expand our presence in emerging regions while right-sizing our overall manufacturing capacity to ensure best-in-cost production, and continued high performance in product quality, delivery and innovation for our customers.”

Upon emergence, DIP claims, administrative expenses and certain priority claims will receive cash. Holders of second lien debt will receive new Convertible Preferred Stock on account of their claims. Senior Notes and Other General Unsecured Claims will receive 100 percent of New Common Stock. The company’s pre-bankruptcy subordinated notes, convertible preferred securities and existing equity will not receive recoveries under the Plan. Upon emergence, DURA expects to be a publicly reporting company under SEC rules.

DURA was advised by AlixPartners, Kirkland & Ellis and Miller Buckfire in connection with its Chapter 11 reorganization.

For more information about DURA Automotive Systems, go to: www.duraauto.com.