Tower Automotive requests court OK of DIP waiver to avoid late reporting default

By Caroline Salls

Pittsburgh, April 13 - Tower Automotive Inc. requested court approval of a waiver to its debtor-in-possession facility agreement that will extend the deadlines for the company to file its financial statements to June 30, according to a Wednesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

Currently, the DIP agreement requires Tower to file its financial statements for the year ended Dec. 31 to its DIP lenders within 90 days of the end of the fiscal year and its financial statements for the quarter ended March 31 within 45 days of the end of the quarter.

Tower said it was unable to file its financial reports on time because it is still in the process of gathering and preparing information for its auditors.

If the waiver is not approved, Tower will be in default on the DIP agreement if it does not file the statements within a 10-day cure period.

The company will pay a $362,500 waiver fee and a $250,000 arrangement fee.

A hearing is scheduled for April 26.

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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