A Tale Of Two Towers
By Priya Jestin, Staff Writer
I couldn’t resist the title. And nor can I resist this statement: There was one Tower, which fought bravely but couldn’t fight its destiny. And then there was a Tower that fought against all odds and is now ready to rise like a Phoenix from the ashes.
Okay guys, I’m sorry for letting myself go. But what does one do when you cannot get over a Tower hangover. Fine, getting on with the topic, I’m talking about Tower Automotive Corp now and not Tower Records. Kathleen Ligocki, president and chief executive of Tower Automotive Corp. recently announced that the firm was ready to emerge from bankruptcy. Three creditors are supposed to have agreed to invest up to $250 million to help restructure the company.
According to the restructuring plan, the senior secured debt would be refinanced and paid in full. All allowed administrative and priority claims will also be paid in full. A few unsecured creditors would be entitled to cash and can buy shares in the new company. Tower is one of 13 auto suppliers that filed for bankruptcy in the last five years, and one of six companies on a 2005 filing roster that included Delphi Corp. and Collins & Aikman Inc. Wish there were some Good Samaritan to save Tower Records too.
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