Bankruptcy Judge Kevin J. Carey yesterday approved Dura Automotive Systems Inc.’s third amended plan of reorganization, clearing the path for the auto parts maker to exit bankruptcy protection, Bankruptcy Law360 reported. Incorporating only technical amendments, the approved plan resembles the reorganization plan submitted on May 8, which lowered the value of the company from $600 million to $495 million. In addition, the plan also stipulates that Dura will pay all debtor-in-possession facility claims in full and in cash.

Delphi Corp., the bankrupt former parts subsidiary of General Motors Corp., asked the court to approve a $254 million increase in its loan package after more lenders showed interest in funding the loan than the company expected, Bloomberg News reported yesterday. Delphi said that its debtor-in-possession loan was oversubscribed during a syndication process, giving Delphi the opportunity to restructure the loan on more favorable terms and increase the total borrowings. Delphi filed a motion May 9 with the U.S. Bankruptcy Court in New York seeking approval of the changes. Delphi won an extension of its bankruptcy loan on April 30 from Bankruptcy Judge Robert Drain. The Troy, Mich.-based company’s loan was to mature on July 1.

Though the chapter 11 reorganization plan of New Century TRS Holding Corp. has come under fire from several parties in the lender’s bankruptcy, the company continues to push for approval, Bankruptcy Law360 reported yesterday. The company and its unsecured creditors’ committee said in post-hearing brief on Wednesday that the plan does not inflate the claims of certain creditors. New Century’s post-hearing brief comes in response to an objection filed at the end of April in which the ad hoc committee of beneficiaries of New Century’s pension plan urged the court to deny confirmation of the lender’s March 18 liquidation plan because it threatened to disperse the funds held in trust for the exclusive benefit of employees.

Mortgage lender Countrywide Financial Corp., which is under investigation for inflating certain borrowers’ fees, acknowledged at a Senate Judiciary Committee hearing yesterday that it made errors and pledged to take steps to improve its operations, the Associated Press reported. Steve Bailey, chief executive for loan administration at Countrywide, said that the company will hire an outside auditor to review its actions in cases involving homeowners who have filed for bankruptcy court protection. Bailey, however, disputed accusations made by hundreds of borrowers in Pennsylvania, Florida and other states that the company has sought to collect inflated fees and other payments by filing inaccurate bankruptcy documents. The Justice Department is currently investigating thes accusations. Katherine Porter, a professor at the University of Iowa, testified that mortgage companies and servicers have improperly sought repayment for attorneys’ fees and other costs without fully disclosing or documenting the fees. Sen. Charles Schumer (D-N.Y.) said that Bank of America Corp., which agreed to buy Countrywide in January for approximately $4 billion, should reconsider the deal’s price tag. If the purchase price for Countrywide was “based in part on profits from these bad practices, Bank of America should demand a lower price, because these practices will not be allowed to continue,” he said.