DURA Automotive Systems, LLC, a leading global automotive supplier specializing in the design, engineering and manufacturing of automotive mobility products, including parts and systems to support the industry’s shift to electric vehicles, announced recently 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. The financing facility will replace a previously announced commitment by the lender under the company’s prior revolving credit facility.
Proceeds from the financing will be used to fund DURA’s ongoing business operations, including capital expenditures for future platforms, and help the company meet its commitments to employees, customers and vendors as it pursues a going-concern sale (363 sale). The financing will allow DURA to continue business as usual while the expedited 363 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. To the extent another bidder is not timely 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’s commitment provides DURA with the capital required for us to continue business as usual and ensure our customers, vendors and employees are compensated during our restructuring process,” said Marc Beilinson, member of DURA’s transaction committee. “This critical funding will allow us to continue our expedited sales process as we work to find a buyer that will not result in any supply disruptions to customers or impairments to trade obligations. We look forward to Bardin Hill’s ongoing support as we seek to best position the Company for future success.”
John Greene, portfolio manager at Bardin Hill, added, “We are pleased that the Court has provided us the opportunity to support DURA during this critical time. As a leading global automotive supplier, we have full confidence in DURA’s growth trajectory and look forward to working with management to capitalize on DURA’s quality manufacturing, talented workforce and new business opportunities.”
DURA’s counsel is Kirkland & Ellis LLP, its restructuring advisor is Portage Point Partners, LLC, and its financial advisor is Jefferies LLC.