American Tire Distributors (ATD) announced Dec. 21 that it has successfully completed its financial recapitalization and emerged from Chapter 11 having reduced its debt by approximately $1.10 billion.
The Huntersville, NC-based company, which filed for bankruptcy protection in October, is in the process of issuing payment for all pre-petition obligations currently due.
The recapitalization was consensual and supported by all key financial stakeholders, as well as vendors and customers, according to ATD. The company is now moving forward with more than $1 billion of committed exit financing arranged by Wells Fargo Capital Finance to support operations and future growth initiatives.
Looking ahead, ATD plans to continue a transformation plan that emphasizes digital tools powered by advanced analytics. Its selection includes 50,000 SKUs and a variety of marketing support programs.
“Today marks a new beginning for ATD. We are a stronger company with the financial flexibility to build on an 80-year history of leadership and innovation,” CEO Stuart Schuette said. “We are laser-focused on delivering greater value for our customers and manufacturer partners, with differentiated capabilities based on advanced analytics.”
The U.S. Bankruptcy Court for the District of Delaware closed affiliate cases including debtors Accelerate Holding Corp., Rubbr Automotive Services, The Hercules Tire & Rubber Co., Terry’s Tire Town Holdings, Tire Pros Francorp and Hercules Asia Pacific LLC. The lead case remains open for claims objections.
Kirkland & Ellis LLP is serving as legal counsel to ATD, AlixPartners LLP as its operational advisor and Moelis & Co. LLC as financial advisor.