Wholesale Distribution

Stakeholders Vote to Accept ATD's Reorganization Plan

Posted on December 18, 2018

The votes are in. And they represent a very positive sign for American Tire Distributors Inc. (ATD).

On Monday, Dec. 17, stakeholders with voting rights voted nearly unanimously to accept ATD's Chapter 11 Plan of Reorganization. "The voting results we are announcing today reflect the strong confidence that our financial stakeholders have in ATD's business and the actions we are taking to lead our industry forward," said CEO Stuart Schuette. "The support of our financial stakeholders has enabled us to move through this process on an expedited basis.

"We are now entering the final phase of this process and are poised to move forward as a stronger company that is even better positioned to help our customers continue thriving and driving into the future."

The reorganization plan received approval from each class of creditors and holders of interests entitled to vote, far exceeding the required thresholds, including:

* 100% of voting term loan lenders;

* 98% of voting bondholders;

* 100% of voting shareholders.

The company's recapitalization will reduce its debt by more than $1.1 billion and provide the company with new exit financing to support its ongoing operations. A confirmation hearing on the plan is scheduled to occur on Wednesday, Dec. 19, 2018.

Kirkland & Ellis LLP is serving as legal counsel to ATD, while AlixPartners LLP is serving as operational advisor and Moelis & Company LLC is serving as financial advisor.

Additional information is available on ATD's restructuring website at www.ATDrecapitalization.com or by calling ATD's restructuring hotline, toll-free in the U.S., at (866) 967-0495. For calls originating outside of the U.S., please dial +1 (310) 751-2695. Questions also can be submitted by email to ATDinfo@kccllc.com.

Court filings and other documents related to the court-supervised proceedings are available on a separate website administered by ATD's claims agent, KCC, at www.kccllc.net/ATD.

For background, check out these links:

"ATD Update: 'We Have Been Working with Our Suppliers as Normal.'

"ATD's Lenders Support the Chapter 11 Reorganization Plan."

"ATD’s Top 30 Creditors."

"Answers to 31 FAQs About ATD's Chapter 11 Filing."

"ATD Voluntarily Files for Chapter 11 Reorganization."

Related Topics: ATD, bankruptcy, light truck tires, passenger tires, Stuart Schuette

Comments ( 1 )
  • Mr tread

     | about 12 months ago

    But remember all the comments about ATD going closing there doors bla bla bla. Only the strong survive.

More Stories
News Application Period for TIA/Michelin Scholarship Opens

The Tire Industry Association and Michelin North America Inc. have announced that the application period for the 2020-2021 Michelin/TIA Scholarship is now open.

Hunter Engineering Co. has earned its 300th U.S. patent for undercar service equipment.
News Hunter Engineering Earns 300th Patent

Hunter Engineering Co. has earned its 300th United States patent, making it the first company in the undercar equipment industry to reach this milestone, according to Hunter officials.

Yokohama officials say the new 114R UWB regional-haul trailer tire delivers fuel efficiency and longer tread life.
News Yokohama Has a New UWB Regional-Haul Trailer Tire

The new 114R Ultra Wide-Base (UWB) regional-haul trailer tire from Yokohama Tire Corp. is available now in size 445/50R22.5.

Be the First to Know

Get the latest news and most popular articles from MTD delivered straight to your inbox. Stay on top of the tire industry and don't miss a thing!