Wholesale Distribution

ATD’s Top 30 Creditors

Posted on October 4, 2018

Court filings show the 30 companies that American Tire Distributors Inc. (ATD) owes the most money. Not surprisingly, tire companies make up more than half of the list.

In any case where a company seeks Chapter 11 bankruptcy protection, it must disclose the 30 largest unsecured claims. The list doesn’t include claims to those defined as insiders, or “secured creditors, unless the unsecured claim resulting from inadequate collateral value places the creditor among the holders of the 30 largest unsecured claims.”

  1. Wells Fargo Bank $1,050,000,000
  2. Continental Tire North America Inc. $123,774,782
  3. Cooper Tire & Rubber Co. $89,081,729
  4. Michelin North America Inc. $59,625,293
  5. Nexen Tire America Inc. $52,824,791
  6. Toyo Tire USA Corp. $39,968,175
  7. Zhongce Rubber (Thailand) Co. Ltd. $33,308,100
  8. Nitto Tire USA Inc. $33,028,484
  9. Sumitomo Rubber North America Inc. $26,380,236
  10. Zhilian Trading Ltd. $26,152,183
  11. Sailun Jinyu Group (Hong Kong) Co. Ltd. $26,026,351
  12. The Carlstar Group LLC $20,832,356
  13. Goodyear Tire & Rubber Co. $16,251,155
  14. Hankook Tire America Corp. $14,437,944
  15. Bridgestone/Firestone Inc. $12,535,712
  16. Kumho Tire USA Inc. $11,759,887
  17. Pirelli Tire LLC $9,492,694
  18. Zenith Holdings Ltd. $3,621,873
  19. Design Infini $2,886,786
  20. Qingdao Free Trade Zone Zhillian Trade Co. Ltd. $2,881,843
  21. Camso USA Inc. $2,856,668
  22. The Boston Consulting Group Inc. $2,150,000
  23. Sutong China Tire Resources Inc. $1,749,840
  24. Martins Industries $1,095,918
  25. Ultra Wheel Co. $933,121
  26. Hennessy Industries Inc. $903,210
  27. Mickey Thompson $885,805
  28. McKinsey & Co. $750,000
  29. Marriott Hotel Services Inc. $577,324
  30. CH Robinson International Inc. $408,347

A few more takeaways

In some ways the bankruptcy filing is like any standard government form. There are boxes to mark that give a glimpse of ATD’s financial picture, but they also fall into pretty wide ranges. ATD’s Chief Financial Officer William Williams signed off on the form with these figures:

  • Estimated number of creditors: There are 10 boxes from which to select, and the total number of creditors can range from one to more than 100,000. ATD chose: 200-999.
  • Estimated assets: There are 12 boxes, each with a range of figures. The lowest is up to $50,000. The highest is more than $50 billion. ATD chose: $1,000,000,001 - $10 billion.
  • Estimated liabilities: Again, there are 12 boxes and the ranges match those from the assets category. ATD chose: $1,000,000,001 - $10 billion.

The bankruptcy case, technically filed by ATD Corp., asked that the cases of eight affiliates be linked and joined to the primary case filed with the U.S. Bankruptcy Court for the District of Delaware. The affiliates are: Accelerate Holdings Corp., American Tire Distributors Holdings Inc., American Tire Distributors Inc., Hercules Asia Pacific LLC, Rubbr Automotive Service LLS, Terry’s Tire Town Holdings Inc., Hercules Tire & Rubber Co., and Tire Pros Francorp.

For more on today's Chapter 11 bankruptcy filing by ATD, read:

ATD Voluntarily Files for Chapter 11 Reorganization

Answers to 31 FAQs About ATD's Chapter 11 Filing

Related Topics: ATD, ATD financials, bankruptcy, wholesale

Comments ( 9 )
  • Jay

     | about 2 months ago

    Nothing criminal going on. When you have $5B in sales you are going to constantly owe your tire vendors $800 million if you are getting 60 day terms. They sold tires at low prices to drive out the competition, drove trucks too many miles without enough tires to pay the bills and spent money like they were in congress. Every time they reported sales they increased, but they lost money every year. They just proved that business plan doesn't work. Can't blame it on Goodyear and Bridgestone, these things happen and a healthy company is prepared and capable to survive those changes. I think Goodyear and Bridgestone could see where ATD was headed and decided they needed to have a better plan in place to protect their market share. To those that think ATD was the greatest supplier, do you think ATD can continue to operate the same way? World class logistics is easy. Use 4 times more trucks than your competitors, just don't ask me how you pay for that. Do you want a supplier that doesn't have a solid business? What will you think if Chapter 11 turns into Chapter 7 and they don't exist anymore?

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