LAWSUITS NEWS & LEGAL INFORMATION
Business Buyout
This is a settlement for the Automotive lawsuit.
Washington, DC: (Feb-25-08) Auto parts supplier Dura Automotive Systems Inc. has been embroiled in a legal battle with Nyloncraft Inc., over Nyloncraft's purchase of Dura's plastics products business in 2002. Records show that Dura, based in Rochester Hills, MI, filed for Chapter 11 protection in October 2006, one of many auto parts suppliers hit by the downturn in the automotive industry. The company had planned to emerge from Chapter 11 by the end of 2007 but couldn't raise enough bankruptcy exit financing in the tight credit market. The company stated that Nyloncraft, a Mishawaka, IN, parts supplier that counts on Dura for about 5% of its business, defaulted on the note shortly after Dura sought Chapter 11 bankruptcy protection in late 2006. Court records reveal that Nyloncraft didn't make last year's $4 million principal payment on the note, which has accrued $647,500 in unpaid interest.
Court records show that the parties had reached a settlement agreement in which Dura Automotive won bankruptcy court approval to settle a debt stemming from Nyloncraft's takeover. The deal, approved by Judge Kevin Carey of the US Bankruptcy Court in Wilmington, DE, stated that Nyloncraft will pay about $2 million to end its obligation to continue paying principal and interest on a $6 million subordinated note it issued to Dura when it bought the company's plastics business for $41 million in January 2002. Dura officials said that the company is trying to exit Chapter 11 protection by June 2008, under a new restructuring plan and is negotiating with its creditors. [FORBES: BUSINESS BUYOUT]
Published on Feb-26-08
Court records show that the parties had reached a settlement agreement in which Dura Automotive won bankruptcy court approval to settle a debt stemming from Nyloncraft's takeover. The deal, approved by Judge Kevin Carey of the US Bankruptcy Court in Wilmington, DE, stated that Nyloncraft will pay about $2 million to end its obligation to continue paying principal and interest on a $6 million subordinated note it issued to Dura when it bought the company's plastics business for $41 million in January 2002. Dura officials said that the company is trying to exit Chapter 11 protection by June 2008, under a new restructuring plan and is negotiating with its creditors. [
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