Noteholders Throw Up Hands At Dura Offering

Law360, New York (August 7, 2007, 12:00 AM EDT) -- Bankrupt auto supplier Dura Automotive Systems Inc.’s noteholders have objected to the company's plan to enter into a backstop purchase agreement and rights offering, arguing that the move is an effort to erase hundreds of millions of dollars “with the stroke of a pen.”

In a motion filed Friday in the U.S. Bankruptcy Court for the District of Delaware, the noteholders of the 9% of Dura’s senior subordinated notes said the rights offering would eliminate their claim – worth more than $500 million. U.S. Bank Trust...
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