Dura amends management incentive plan to include two new goals

By Caroline Salls

Pittsburgh, May 11 - Dura Automotive Systems, Inc. requested court approval of a revised key management incentive plan, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.

The company said this plan covers employees involved with development of a 2007/2008 operating forecast and a five-year business plan.

The revised plan provides incentives for meeting business performance criteria and helping the company quickly exit Chapter 11 bankruptcy.

The total amount of revised incentive plan payments is expected to be $4.41 million.

Tier one incentive plan participants will receive three payments, including 25% of bonus payments upon delivery of a five-year business plan to the company's unsecured creditors and second-lien committees, 25% upon filing of a plan of reorganization with the court and 50% on the earlier of Dec. 31, 2007 or upon confirmation of the plan, subject to trailing 2007 EBITDA targets.

Tier two incentive plan participants will receive payments based on three criteria that were included in the original incentive plan.

These criteria are moving production for 2,000 positions by Dec. 31, completing the company's "50-Cubed Plan" at or under a $100 million budget and achieving personal goals set by each participant's management.

A hearing is scheduled for May 30.

Dura, a Rochester Hills, Mich.-based automotive parts maker, filed for bankruptcy on Oct. 30, 2006. Its Chapter 11 case number is 06-11202.

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