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Opposition To Dura's Backstop Deal Grows

Law360 (August 8, 2007, 12:00 AM EDT) -- Bankrupt auto supplier Dura Automotive Systems Inc. is facing increasing opposition to its plan to enter into a backstop rights purchase agreement, with unsecured creditors claiming the deal would leave shareholders high and dry.

The official committee of unsecured creditors filed an emergency motion Tuesday, asking the Delaware bankruptcy court for orders expediting discovery and adjourning the hearing on Dura's motion for approval of the plan.

The committee, which intends to file a formal objection to the plan on Thursday, argues the proposed agreement with senior...
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