Tower Creditors Back Out Of Rights Offering

Law360, New York (January 12, 2007, 12:00 AM EST) -- A group of hedge funds has reneged on its decision to underwrite a $250 million rights offering for Tower Automotive Inc., leaving the bankrupt auto parts maker sorely in need of a new equity investment.

Though Tower did not say why the funds, managed by Strategic Value Partners LLC, Wayzata Investment Partners LLC and Stark Investments, changed their minds, it did say it had already received proposals from other interested investors.

“Tower…continues to evaluate those proposals with the goal of completing its restructuring process in the...
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