Tower Automotive to obtain 60-day exclusivity extension if it can provide draft plan by Sept. 7

By Jennifer Lanning Drey

Eugene, Ore., Aug. 16 - Tower Automotive Inc.'s exclusive period to file a plan of reorganization and solicit votes on the plan will be extended to Oct. 25 if the company can provide its creditors committee with a draft plan by Sept. 7, according to a source who attended the hearing.

If Tower does not provide a draft by that date, the court will schedule a hearing to consider whether the extension should be granted.

The ruling came Wednesday from the U.S. Bankruptcy Court for the Southern District of New York.

Tower had asked the court to extend its exclusive plan filing period to Oct. 25 from Aug. 28 and the solicitation period to Dec. 26 from Oct. 27.

According to Tower's motion requesting the relief, negotiations on an intercreditor settlement are ongoing. Tower said the settlement would be an integral part of its plan.

The company also said it is making progress in discussions with its labor and retiree representatives on necessary concessions and changes needed to formulate a plan.

The Novi, Mich.-based auto parts maker filed for bankruptcy on Feb. 1, 2005. Its Chapter 11 case number is 05-10578.

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