Dura looks to amend DIP to extend lien challenge deadline to Sept. 6

By Caroline Salls

Pittsburgh, April 11 - Dura Automotive Systems, Inc. requested court approval to amend its debtor-in-possession facility to extend the deadline for invalidating, subordinating or challenging pre-bankruptcy second-priority liens, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.

The company wants to extend the deadline to Sept. 6 from May 9.

Dura said it is currently investigating whether to file a lawsuit seeking to avoid the pre-bankruptcy second-priority liens to the extent they were perfected when August 2006 financing statements were filed.

The company said the second-lien lenders refused to consent to a voluntary extension of the lien investigation and challenge deadline.

A hearing is scheduled for April 25.

Dura, a Rochester Hills, Mich.-based automotive parts maker, filed for bankruptcy on Oct. 30. Its Chapter 11 case number is 06-11202.

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