DURA Automotive Systems has received approval from the U.S. Bankruptcy Court for the District of Delaware for $84 million in DIP financing from funds managed by Bardin Hill Investment Partners and its affiliates

The financing facility will replace a previously announced commitment by the lender under the company’s prior revolving credit facility.

Proceeds from the financing will be used to fund DURA’s ongoing business operations, including capital expenditures for future platforms, and help the company meets its commitments to employees, customers, and vendors as it pursues a going-concern sale.

The financing will allow DURA to continue business as usual while the expedited 363 sale process takes place. DURA and its advisors will now conduct an accelerated marketing process over the coming weeks for a qualified purchaser that would agree to purchase all of DURA’s assets and assume all customer, trade, and employee obligations. DURA intends for any sale to close within approximately 120 days.

To the extent another bidder is not timely found, Bardin Hill and existing creditors have committed to restructure DURA’s funded indebtedness pursuant to a Chapter 11 plan of reorganization that would pay claims of customers, employees, and go-forward suppliers and trade vendors in full in cash at closing or in the ordinary course of business.

“Bardin Hill’s commitment provides DURA with the capital required for us to continue business as usual and ensure our customers, vendors and employees are compensated during our restructuring process,” said Marc Beilinson, member of DURA’s Transaction Committee. “This critical funding will allow us to continue our expedited sales process as we work to find a buyer that will not result in any supply disruptions to customers or impairments to trade obligations. We look forward to Bardin Hill’s ongoing support as we seek to best position the Company for future success.”

DURA’s counsel is Kirkland & Ellis, its restructuring advisor is Portage Point Partners, and its financial advisor is Jefferies.

DURA Automotive Systems is a global automotive supplier specializing in the design, engineering, and manufacturing of innovative solutions that drive the evolution of mobility.