The ongoing support of our suppliers is crucial to DURA’s success, and we thank you for your business as we work to improve our operations and financial structure to address the changing realities of today’s global automotive marketplace.
On October 30, 2006, DURA announced that it has voluntarily elected to pursue a financial restructuring of the company and its U.S. and Canadian subsidiaries under Chapter 11 of the U.S. Bankruptcy Code. Our European and other operations outside the U.S. and Canada, are not part of the filing and will feel minimal, if any, impact from the filing.
Chapter 11 will give our U.S. and Canada operations the financing, time and protections we need to continue day-to-day operations, enhance our operational restructuring program and make the changes needed to our capital structure to position DURA for long-term success.
As part of the filing, we arranged for approximately $300 million in debtor-in-possession financing, part of which will provide the working capital to meet our obligations to our vendors, customers and employees. DURA will continue paying vendors delivering goods and services in the ordinary course of business. Payments due to our vendors for services provided in the ordinary course of business post-petition are entitled to administrative status.
Although the automatic stay prevents payment of any pre-petition claims, we have requested, and expect to receive, authority from the bankruptcy court to:
- Pay certain critical and other pre-petition trade claims in limited
circumstances;
- Pay pre-petition wages to our employees;
- Continue our customer programs throughout the course of these
proceedings;
- Honor our warranty obligations.
All of the above will allow our U.S. and Canada operations to continue operations post-petition without interruption. Therefore, our vendors will continue to deal with us, in part because they will be paid in full for any services and supplies provided to us. As we are committed to ensuring continuity of supply to our customers, we ask that you continue shipments on customary terms.
Let me reiterate that Europe and our other operations outside the U.S. and Canada are not part of the Chapter 11 filling, and will feel minimal, if any, impact from the filing. DURA’s operations outside of the U.S. and Canada will continue to pay vendors for goods and services received both before and after the filing and for future obligations in the ordinary course of business. Although in many countries “bankruptcy” is synonymous with liquidation, this is not the case in the U.S. Chapter 11 is a very different process and achieves different results than bankruptcy laws in many other countries. DURA is not going out of business; it is looking to strengthen its business.
We believe that once our operational and financial programs are completed, we will be in a better competitive position and a stronger business partner into the future.
We will keep you informed and updated about our progress. If you would like additional information, please call our financial restructuring hotline at:
U.S. Toll-Free: 1-800-820-0985
International: +1 248-844-1600
Supplier Letter
FAQs for Suppliers to U.S. & Canada rev. 1
FAQs for Suppliers to Non-U.S. & Canada (Europe, Brazil, Mexico, China)
