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Cerberus Buys Out Bankrupt Auto Parts Maker

Law360 (March 29, 2007, 12:00 AM EDT) -- Cerberus Capital Management LP plans to buy the assets of bankrupt Tower Automotive Inc. for about $1 billion, a deal that will allow it to pay off most of its debt and emerge from bankruptcy protection.

Tower said the proposed transaction should also allow for the full payment of its debtor-in-possession credit facility, second-lien loan facility, assumption of the company’s pensions and certain recovery for unsecured creditors. The company said that its unsecured creditors committee supports the transaction, and has signed the term sheet.

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