Auto parts supplier Dura Automotive Systems Inc. on Monday said its U.S. and Canadian subsidiaries have filed for bankruptcy protection amid production cuts by major U.S. automakers.
The story reported by the Associated Press said the Chapter 11 filing was made with U.S. Bankruptcy Court for the District of Delaware.
Its European and other operations outside the U.S. and Canada weren’t part of the filing.
“With industry conditions tightening further, we concluded that our capital structure is no longer appropriate,” Larry Denton, chairman and chief executive of Dura Automotive Systems, said in a statement.
As part of the filing, Dura said it has arranged for about $300 million in debtor-in-possession financing, which will be used to fund normal operations and continue a restructuring initiated in February.
“Pursuing a financial reorganization under court protections is the prudent course of action and positioning us for long-term sustainability,” Denton said.
“This is in the best interest of our employees, customers, vendors and other business partners.”
Dura Automotive is a designer and manufacturer of driver control systems, seating control systems, glass systems, engineered assemblies, structural door modules and exterior trim systems for automakers.
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