From Detroit Free Press

ROCHESTER HILLS, MI — Dura Automotive Systems Inc. said it has asked the U.S. Bankruptcy Court in Wilmington, DE, for an extension through Sept. 6 to test whether second-lien creditors have a valid security interest.

The Rochester Hills, MI, auto parts supplier, which filed for Chapter 11 bankruptcy protection in October, had previously won authority to use incoming cash at the beginning of the reorganization. At that time, the creditors’ committee was given 90 days to challenge the validity of the second-lien debt. The debt holders then agreed to extend the deadline to May 9.

Dura said it is seeking another extension because the second-lien creditors will not grant the company more time voluntarily. The company said it will ask the court to extend the deadline at an April 25 hearing.

At the time Dura filed for bankruptcy, the company had 16,000 employees in 63 plants across 14 countries. Last year, Dura said it planned to shut four plants. In February, the company said it would close at least 10 more by the end of 2007.

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