Dura Shares Drop on Bankruptcy Prediction

(September 18th, 2006 under Economic News )
Shares dropped to a 52-week low on Thursday for Dura Automotive Systems Inc. after an analyst predicted a bankruptcy filing by this auto supplier. The analyst also predicted that the bankruptcy process may be drawn out. Production cuts announced by Detroit-based automakers have hurt this company's finances. "Thompson predicted that Dura will File for bankruptcy within the "next few months" and that no addition coupon payments will be made on the company's subordinated notes. That's good news for senior note holders, because no additional value would be distributed to subordinated note holders though coupon payments, but a potential fight over the company's valuation could drag out the process, "We continue to think the senior notes represent an interesting investment, but are taking down our confidence level about a quick bankruptcy and changing our recommendation to "Market Perform,'" Thompson said." The full article will be available on the Web for a limited time: http://www.chron.com/disp/story.mpl/ap/fn/4186709.html Pam

This entry was posted on Monday, September 18th, 2006 at 8:47 am and is filed under Economic News .


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