IATO - SAE Indonesia

Tower Automotive, a US auto parts maker operating under bankruptcy protection since February 2005, has agreed to sell all its assets to private equity firm Cerberus Capital Management for around $1 billion.

Ratification of the deal remains subject to any other bids made for Tower Automotive and the approval of the US Bankruptcy Court. Chapter 11 bankruptcy regulations encourage the prospect of an auction to ensure that creditors recover as much finance as possible. Advertisement

Qualified parties may submit competing bids by June 15, 2007. If competing bids are received, an auction will be held on June 21, 2007 to determine the highest and best bid.

Under bankruptcy protection, Tower has diversified its customer portfolio, sold non-core businesses, consolidated the North American manufacturing footprint and negotiated settlements with all US-based labor unions. Kathleen Ligocki, Tower Automotive's president and CEO, said that the recapitalization of the company was the last major milestone in its restructuring process.