Auburn Hills’ Dura Automotive Systems, a global automotive supplier specializing in the design, engineering, and manufacturing of automotive mobility products, has announced 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 an $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.
“We are pleased that the court has provided us the opportunity to support Dura during this critical time,” says John Greene, portfolio manager at Bardin Hill. “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.”
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.
Dura and its advisers will 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 about 120 days.
To the extent another bidder is not found in a timely manner, Bardin Hill and existing creditors have committed to restructure Dura’s funded indebtedness pursuant to 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,” says 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.”
Dura’s counsel is Kirkland and Ellis LLP, its restructuring adviser is Portage Point Partners LLC, and its financial adviser is Jefferies LLC.
Dura was founded in 1914 and invests in vehicle lightweighting, design aesthetics, amalgamated mechatronics, advanced safety and mobility, and the fusion of human machine interfaces with infotainment. Its products include the parts and systems to support the industry’s shift to electric vehicles. The company employs more than 9,400 people in 14 countries and markets complete systems and modules to automakers in the Americas, Asia, and Europe.