Rochester Hills, Michigan, United States and Karnataka, India
DURA Automotive Systems, Inc. (OTC:DRRAQ), has announced that it has entered into a technical alliance with Aditya Auto Products and Engineering Pvt. Ltd., based in Bangalore, India, to bring new automotive technologies to the growing domestic Indian and Asian markets. DURA will supply technology to Aditya for the manufacture of products such as pedals, parking brakes, shifters and spare tire carriers. Aditya will produce the parts and provide local support to automotive OEMs in the region. DURA and Aditya anticipate that the alliance will commence manufacturing of DURA components in India by the first quarter of 2008.
"Establishing a manufacturing presence in India is a key component of our global growth strategy, which is designed to leverage DURA technology investments and provide local support to customers anywhere in the world," said Larry Denton, DURA Automotive's chief executive officer. "The DURA and Aditya partnership opens significant opportunities for us in fast-growing automotive markets."
By 2012, India is projected to be the seventh largest automobile producer in the world. The establishment of the alliance in Bangalore, a major Indian market, also provides access to neighboring Asian markets.
C. Jayaraman, Aditya's managing director and chief executive officer, said, "Our alliance brings together Aditya's expertise in designing and manufacturing systems with DURA's world-class technology to meet the requirements of leading automakers in this region. Combining our strengths will better position us to participate in India's growing domestic automotive market and beyond."
DURA will contribute designs, intellectual property and technical resources. Under the terms of the agreement, the alliance is planned to become a joint venture in three years and when certain milestones are achieved. Once initiated, the joint venture will operate under the name Aditya DURA Pvt. Ltd.
DURA currently has a presence in 16 countries with 69 locations, including its manufacturing facilities, technology and customer service centers, and joint venture companies.
About Aditya Auto Products and Engineering India Pvt. Ltd.
Aditya Auto Products & Engineering India Private Limited is a privately owned and professionally managed organization, engaged in the business of design & manufacture of systems & sub systems to meet the requirements of the growing automobile industry. Beginning as Autarky Auto in April 1989 and established as Aditya Auto Products in February 1999, the company has its headquarters in Bangalore, India, and works closely with leading Automotive OEMs & Global tier 1 industries, both in India and the rest of the world. Information about Aditya and its products is available on the internet at www.adityaauto.com.
About DURA Automotive Systems, Inc.
DURA Automotive Systems, Inc., is a leading independent designer and manufacturer of driver control systems, seating control systems, glass systems, engineered assemblies, structural door modules and exterior trim systems for the global automotive industry. The company is also a leading supplier of similar products to the recreation vehicle (RV) and specialty vehicle industries. DURA markets its automotive products to every North American, Asian and European original equipment manufacturer (OEM) and many leading Tier 1 automotive suppliers. DURA is headquartered in Rochester Hills, Mich. Information about DURA and its products is available on the Internet at www.duraauto.com.
Forward-looking Statements
This press release, as well as other statements made by DURA may contain forward-looking statements within the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, that reflect, when made, the company's current views with respect to current events and financial performance. Such forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the company's operations and business environment which may cause the actual results of the company to be materially different from any future results, express or implied, by such forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, the following: (i) the ability of the company to continue as a going concern; (ii) the ability of the company to operate pursuant to the terms of the debtor-in-possession ("DIP") financing facility; (iii) the company's ability to obtain court approval with respect to motions in the chapter 11 proceeding prosecuted by it from time to time; (iv) the ability of the company to develop, prosecute, confirm and consummate one or more plans of reorganization with respect to the Chapter 11 cases; (iv) risks associated with third parties seeking and obtaining court approval to terminate or shorten the exclusivity period for the company to propose and confirm one or more plans of reorganization, for the appointment of a chapter 11 trustee or to convert the cases to chapter 7 cases; (v) the ability of the company to obtain and maintain normal terms with vendors and service providers; (vi) the company's ability to maintain contracts that are critical to its operations; (vii) the potential adverse impact of the Chapter 11 cases on the company's liquidity or results of operations; (viii) the ability of the company to execute its business plans, and strategy, including the operational restructuring initially announced in February 2006, and to do so in a timely fashion; (ix) the ability of the company to attract, motivate and/or retain key executives and associates; (x) the ability of the company to avoid or continue to operate during a strike, or partial work stoppage or slow down by any of its unionized employees; (x) general economic or business conditions affecting the automotive industry (which is dependent on consumer spending), either nationally or regionally, being less favorable than expected; and (xi) increased competition in the automotive components supply market. Other risk factors are listed from time to time in the company's United States Securities and Exchange Commission reports, including, but not limited to the Annual Report on Form 10-K for the year ended December 31, 2005. DURA disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events and/or otherwise.
Similarly, these and other factors, including the terms of any reorganization plan ultimately confirmed, can affect the value of the company's various pre-petition liabilities, common stock and/or other equity securities. Additionally, no assurance can be given as to what values, if any, will be ascribed in the bankruptcy proceedings to each of these constituencies. A plan of reorganization could result in holders of DURA's common stock receiving no distribution on account of their interest and cancellation of their interests. Under certain conditions specified in the Bankruptcy Code, a plan of reorganization may be confirmed notwithstanding its rejection by an impaired class of creditors or equity holders and notwithstanding the fact that equity holders do not receive or retain property on account of their equity interests under the plan. In light of the foregoing, the company considers the value of the common stock to be highly speculative and cautions equity holders that the stock may ultimately be determined to have no value. Accordingly, the company urges that appropriate caution be exercised with respect to existing and future investments in DURA's common stock or other equity interests or any claims relating to pre-petition liabilities.
CONTACT: Brunswick Group Ellen Gonda or Christina Stenson 212-333-3810
Source: Business Wire (Business Wire India)
Press release presented here is sourced from the Source mentioned above and is provided on as-is basis. Please contact the Company / Source directly for any further information in regard to this release. This website will be unable to assist you in regard to the accuracy or correctness of information in this release.
