Dura Bondholders Lose Investing
The plan by Dura Automotive Systems to exit bankruptcy protection could give managers as much as $60 million in stock while leaving most bondholders empty-handed. Pacificor, a hedge fund that owns at least $133 million of Dura’s senior debt, agreed to take control of the auto parts maker, which filed for Chapter 11 protection from creditors on Oct. 30, 2006. Pacificor teamed up with Dura’s chief executive, Lawrence Denton, and managers in a restructuring that values the company’s equity at about $600 million. Ten percent would be set aside for executive incentives. The arrangement provides nothing for holders of $561 million in 9 percent subordinated notes due in 2009. Those investors are finding that buying distressed debt can be a losing gamble when competing with institutions.
Remy Receives Court Approval of First-Day Motions and Interim DIP Facility
Remy Worldwide Holdings has received Bankruptcy Court approval of its first-day motions. This allows Remy to, among other things, pay employee wages and benefits without the ordinary course of business.
C&A May Go out of Business This Week
From Detroit Free Press SOUTHFIELD, MI — Collins & Aikman Corp., once a Fortune 500 auto supplier, is expected to officially go out of business this week. What will remain, even after the company ceases to exist, are nearly 400 patents that a small staff will try to sell. The patents primarily relate to vehicle
DENSO Develops World’s First Passenger Vehicle Refrigeration Cycle System Using an Ejector
DENSO Corp., parent company of Long Beach-based DENSO Sales California has developed the world’s first refrigeration cycle system for passenger vehicles that uses an ejector. The system is used for both an air conditioner and cooler box and is installed on Toyota Motor Corp.’s Land Cruiser, launched in Japan in September. This system will also be installed in the Land Cruiser launched in October in North, Central and South America, Asia and other regions throughout the world.
Oshkosh Truck Corp. Appoints Desmond Soh to President, Asian Operations
OSHKOSH, WI — Oshkosh Truck Corp. has appointed Desmond Soh as president of its Asian Operations. Working out of the Beijing office, Soh will direct overall Oshkosh Truck activities in Asia with a key focus on business expansion. "Desmond’s background and successful track record in overseeing business development, manufacturing operations and purchasing functions in Asia
Remy Files Prepackaged Plan of Reorganization
With the support of its shareholders, Remy Worldwide Holdings, has elected to begin voluntary proceedings for the company and its domestic subsidiaries, under Chapter 11 of the U.S. Bankruptcy Code. During the reorganization process, which is expected to conclude within 60 days, Remy will continue normal business operations. The company anticipates that it will receive court authority to pay employee wages and benefits without interruption and continue to pay trade creditors and suppliers in the ordinary course of business. Remy’s international operations are excluded from the filing and will not be directly affected.
Senate Passes Bill Banning Asbestos-Containing Products
From AAIA Capital Report WASHINGTON, DC — The Senate passed by unanimous consent on Oct. 3, the "Ban Asbestos in America Act of 2007" (S. 742). Introduced by Sen. Patty Murray (D-WA), S. 742 would amend the Toxic Substances Control Act to require the Environmental Protection Agency (EPA) promulgate regulations prohibiting the importation, manufacturing, processing
Delphi Alters Its Proposal to Exit Chapter 11
Delphi Corp. is working on what it calls "laser-like" changes to its reorganization plan, as the company tries to secure loans it needs to leave Chapter 11 bankruptcy protection. Delphi opened a hearing Wednesday to ask for permission to begin soliciting votes from creditors on the changes, but asked the judge to delay ruling while it negotiates financing to emerge from court protection, the Associated Press reported.
Executive Interview with Steve Reindl, General Manager for Shell Lubricants National Accounts
This week we hear from Steve Reindl, general manager for Shell Lubricants National Accounts. Reindl manages a cross-functional team of sales, category management, forecasting and replenishment specialists. Reindl and his team work with national accounts to improve Shell Lubricants’ position in the automotive aftermarket. Shell was recognized by key customers, AutoZone and Advance, as Vendor of the Year in 2006. Reindl joined Shell in October 2001. Prior to joining Shell, he held progressive management positions with Oscar Mayer, Kraft Foods and Pepperidge Farm. Reindl has more than 20 years’ experience in the commercial industry within the food, mass merchandiser and club retail environment. Join us as Reindl talks about Shell’s position in the aftermarket and his thoughts on the future of the lubricants sector.
Precision Auto Care Announces FY 2007 Year End Results
LEESBURG, VA — Precision Auto Care has announced its financial results for the fiscal year ending June 30. Revenue was $12.1 million and profit was $3.4 million, or 12 cents per share, compared with a profit of $721,000, or 2 cents per share, on revenue of $11.7 million for the prior year. For the quarter