ROCHESTER HILLS, Mich. — DURA Automotive Systems has successfully emerged from Chapter 11 bankruptcy protection. The company officially concluded its Chapter 11 reorganization process after meeting all statutory requirements of its Revised Joint Plan of Reorganization, including successfully closing its exit financing facilities and filing associated documentation. In conjunction with its emergence, the company also announced its new board of directors.
“Today marks a fresh start for DURA,” said Larry Denton, chairman and chief executive officer of DURA. “With a strengthened balance sheet and an improved operational footprint, DURA is well positioned in the global automotive supplier market. We will now be able to operate with greater efficiency and flexibility, devoting all of the company’s focus and resources to developing and delivering innovative products to the benefit of our customers and all of our stakeholders.”
DURA’s new seven-member board of directors represents significant international, operational, financial and automotive industry expertise:
Fred Bentley is chief operating officer of Hayes Lemmerz International, Inc., a worldwide producer of aluminum and steel wheels. At Hayes Lemmerz, he was instrumental in changing the company’s global operational footprint and introducing lean manufacturing practices. Prior to Hayes Lemmerz, Bentley served in positions of increasing responsibility at Honeywell (formerly AlliedSignal) where he rose to the position of Managing Director, Europe, and Frito-Lay (PepsiCo).
Denton is former chairman of the board and has been president and chief executive officer of DURA since January 2003. He assumed the role of chairman in 2005. From 1996 to 2002, Denton was president of Dow Automotive, a $1 billion business unit of the Dow Chemical Co. Under his leadership, Dow Automotive became one of the top 100 global suppliers to the automotive industry, growing from $300 million to more than $1 billion in revenue in six years. Prior to that, he spent 24 years with Ford Motor Co., where he held a variety of senior management positions.
Steven Gilbert is senior managing director and chairman of Sun Group (USA). He is also chairman of the board of Gilbert Global Equity Partners, L.P., a billion-dollar private equity fund. From 1992 to 1997 he was the managing general partner of Soros Capital L.P., which he founded. Gilbert has 35 years of experience in private equity investing, investment banking and law. He has served as a director on the boards of more than 25 companies over the span of his career, including Office Depot, Inc., Magnavox Electronic Systems Co., Affinity Financial Group, Inc., GTS-Duratek and Parker Pen Limited.
Timothy Leuliette is chairman of the board for DURA and is currently chairman and CEO of Leuliette Partners LLC, an investment and financial services firm. He is the former co-chairman and co-CEO of Asahi Tec and former chairman, president, and CEO of automotive supplier Metaldyne Corp. He has also served as president and COO of privately held Penske Corp., and prior to that, president and CEO of ITT Automotive and executive vice president at ITT. Over his career he has held executive and management positions at both vehicle manufacturers and suppliers and has served on both corporate and civic boards, including as chairman of the Detroit Branch of the Federal Reserve Bank of Chicago.
Andrew (Andy) Mitchell is chief executive and chief investment officer of investment firm Pacificor LLC. Prior to joining Pacificor, Mitchell was a vice president and co-portfolio manager at ING Funds, and prior to that a vice president and senior analyst at Merrill Lynch Asset Management. Mitchell was also a senior high yield analyst and assistant vice president at Wertheim/Schroder Investment Services. Previous experience also includes operational experience in the oil refining industry with Exxon and in the mining and construction industries with Chevron Resources.
Peter Reilly is president and chief operating officer of Strategic Industries, LLC. Strategic is a diversified holding company with subsidiaries in the automotive and consumer products segments. He joined the company at its inception in 2000 as the chief financial officer. The company was created through a leveraged buyout by Citicorp Venture Capital from US Industries, Inc., a Fortune 500 conglomerate, publicly listed on the New York Stock Exchange. Reilly has significant experience repositioning portfolio companies and helping them capitalize on international opportunities. Prior to joining Strategic, he served as treasurer for USI and various senior financial positions with its predecessor, Hanson Industries, PLC and its subsidiaries.
Jeffrey Stafeil has strong international and financial experience and is currently chief financial officer and board member for Germany-based KlÖckner Pentaplast, the world’s leading producer of films for the pharmaceutical, food and technology product packaging market. Formerly, he was the executive vice president and CFO at automotive supplier Metaldyne Corp., now Asahi Tec Corp. Since 2006 he has served on the board of directors and is co-chairman of the audit committee for Meridian Corp., an automotive supplier that exited bankruptcy in December 2006.
DURA’s exit financing package comprises a $110 million revolving credit facility, a $50 million European first lien term loan, and an approximate $84 million U.S. second lien term loan. In addition to its exit financing facilities, DURA entered into various European accounts receivable factoring facilities totaling approximately $103 million. These exit financing facilities, together with cash from DURA’s balance sheet, will be used in part to finance distributions under the Plan, providing cash to holders of DIP facility claims, administrative expense claims, certain priority claims, and Canadian general unsecured claims. Other creditors receiving distributions under the Plan will receive new equity in the reorganized company to satisfy claims. Effective today, existing DURA stock has been cancelled and will no longer have value.
“This transaction has significantly strengthened DURA’s capital structure by reducing total net debt from over $1.3 billion to approximately $180 million, which will significantly reduce the company’s interest expense,” said Nick Preda, DURA’s CFO.
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.
