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Zohar requests court approval to participate in Dura Automotive sale
By Caroline Salls
Pittsburgh, Feb. 7 – Zohar III, Corp. asked the U.S. Bankruptcy Court for the District of Delaware for approval to enter into potential transactions related to Dura Automotive Systems, LLC’s term loans, according to a motion filed Thursday.
Zohar said the Dura debtors are being marketed for sale under court-approved bidding procedures that allow the Zohar debtors to credit bid their undisputed interest in $105 million in senior secured term loan claims.
“The procedures recognize that such a credit bid, or an alternative transaction sponsored by the Zohar debtors, may be a necessary component of a transaction that will maximize value for the Dura debtors’ assets and, in turn, the Zohar debtors’ recoveries,” the motion said.
Zohar said it has been discussing its participation in the Dura sale process in close collaboration with its primary secured creditors and the Dura debtors.
If Zohar determines that it is in its estates’ best interest to move forward with a transaction related to the Dura term loan claims through the sale process, it will need court approval to do so, according to the motion.
“The requested relief will best position the Zohar debtors to potentially participate in the Dura sale process and facilitate a value-maximizing transaction for the Dura debtors’ assets to enhance recoveries for the Zohar debtors’ estates,” Zohar said in the motion.
Zohar is a Grand Cayman, Cayman Islands-based collateralized debt obligation. The company filed bankruptcy on March 11, 2018 under Chapter 11 case number 18-10512. Dura is an Auburn Hills, Mich.-based automotive parts maker. The company filed bankruptcy on Oct. 17 under Chapter 11 case number 19-06741.
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