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: