Hedge Funds Say Refinancing Is Unen-Dura-ble

Nov 15 2006 | 10:03am ET

Hedge funds claiming control of most of Dura Automotive System’s second-lien debt are crying foul at the Detroit auto-parts supplier’s debt refinancing plan.

Dura, which filed for bankruptcy protecting last month, has proposed a $300 million debtor-in-possession financing plan to pay off $125 million in first-lien debt, leaving it with about $175 million in financing. It’s that latter part that worries the second-lien hedge fund group, which includes Contrarian Funds, D.E. Shaw & Co. and Merrill Lynch Capital, because they see it as an added layer of debt between them and their collateral: the company’s $2 billion in assets.

In a filing Monday, the hedge fund committee said it would seek the continuation of the “adequate protection” package first- and second-lien creditors negotiated prior to the bankruptcy filing, guaranteeing monthly interest payments, as well as footing the bill for legal and financial advisors.

Both the DIP plan and the hedge fund motion are set for review on Monday.


In Depth

Steinbrugge: Top 10 Hedge Fund Industry Trends for 2017

Jan 3 2017 | 9:03pm ET

Each year, Agecroft Partners' Don Steinbrugge predicts the top hedge fund industry...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

DarcMatter: The Top Trends in Alternative Investments for 2017

Jan 13 2017 | 8:22pm ET

The $7 trillion alternative investments industry is poised for continued growth...

 

From the current issue of

Securities and Exchange Commission Chair Mary Jo White will step down as chair of the nation’s Wall Street overseer in January, setting the stage for a potential conservative shift in the regulator’s leadership under the incoming Donald Trump administration.