Tower Automotive granted exclusivity extension

By Caroline Salls

Pittsburgh, April 5 - Tower Automotive, Inc. obtained an extension to its exclusive period to file a plan of reorganization and solicit votes on the plan, according to a Wednesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The company's exclusive plan filing period was extended to May 3 and the solicitation period to June 29, both from March 30.

If the company files a plan by April 30, the exclusivity period will automatically be extended to June 6.

According to the motion, Tower is continuing to discuss terms of its Chapter 11 plan with its official committee of unsecured creditors and other interested parties and has negotiated and distributed a confidential draft plan.

However, the company said a critical aspect of the current plan is whether it will be able to secure a substantial equity investment to fund the restructuring.

If Tower is unable to attract an investment, it said it may consider different exit structures to be effectuated through a plan.

Tower, a 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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