Dura creditor appeals plan confirmation, requests stay

By Caroline Salls

Pittsburgh, May 21 - Dura Automotive Systems, Inc. creditor and equityholder James W. Korth has appealed the court order confirming the company's plan of reorganization, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Delaware.

Korth is also asking the court to stay the plan confirmation order pending outcome of his appeal.

As previously reported, Korth announced in March that he planned to conduct an independent assessment of the company's value.

On April 21, Korth also asked the court to postpone the plan confirmation hearing to give him more time to gather and analyze information. That request was denied.

Then, on May 9, Korth asked the court to deny confirmation of the plan because of alleged creditor treatment discrimination.

Dura's plan was confirmed on May 13.

Korth is a managing partner of J.W. Korth & Co., an investment bank that owns, together with its customers, more than $100 million of Dura's 8 5/8% senior bonds and 9% subordinated bonds.

Dura, a Rochester Hills, Mich.-based automotive parts maker, filed for bankruptcy on Oct. 30, 2006. Its Chapter 11 case number is 06-11202.

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