Venture Holdings' reorganization plan denied confirmation, company to seek sale of assets

New York, Jan. 28 - Venture Holdings Co. LLC said judge Thomas Tucker refused to confirm its plan of reorganization.

The company said it now plans to seek approval to sell all its assets at a hearing on Feb. 1.

In his opinion, the judge said that Larry J. Winget had validly terminated his agreement to contribute assets he controlled in exchange for 100% of the equity of the reorganized company, subject to dilution by a creditors' warrant. The assets included Winget's equity in valuable South African and Australian entities.

Because the plan depended on Winget's contribution, it cannot be confirmed, Tucker wrote in his opinion, which was filed with the Securities and Exchange Commission.

The judge also ruled that Winget had a right to terminate his agreement because the company did not comply with the condition that it deliver a commitment letter for at least $85 million of exit financing on terms acceptable to Winget.

While Venture did come up with a commitment for $125 million from Black Diamond Commercial Finance LLC one hour before the hearing on the disclosure statement, it was not on terms acceptable to Winget.

Venture Holdings, a Sterling Heights, Mich., auto parts maker, filed for bankruptcy in the U.S. Bankruptcy Court for the Eastern District of Michigan on March 28, 2003. Its Chapter 11 case number is 03-48939.

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