Tower Automotive, Inc.

Client

Non-Union Retiree Committee of Tower Automotive, Inc., a global $3.0 billion Tier-1 supplier to nearly every major automotive manufacturer in the world. Tower has over 60 locations on four continents, over 12,000 employees and in excess of $3.0 billion in annual revenues.

Challenge

Represent the non-union retirees in their defense of Tower’s Section 1114 Motion to eliminate all health benefits ands to maximize the recovery to the retirees.

Solution

Bridge pursued an aggressive two-pronged strategy, with the committee’s counsel, of negotiation and litigation. Bridge professionals prepared an expert report highlighting the Debtors’ ability to generate additional cash flow beyond the amounts showcased in the Debtors’ “Long Range” business plan. This effort focused on opportunities identified by Bridge which the Debtors’ business plan did not include.

Results

A Bridge professional testified in a week long trial on the merits of the Debtors’ Section 1114 Motion. As a result, a settlement was reached substantially improving the Committee’s pre-trial position and providing retirees with a recovery of approximately 50% of the Debtors’ valuation of the non-union retirees’ pre-bankruptcy APBO.