The United States Bankruptcy Court for the District of Delaware has confirmed American Tire Distributors Inc.'s Plan of Reorganization. The company expects to complete its recapitalization and successfully emerge from Chapter 11 by the end of the year.
Upon emergence, ATD says it will reduce its debt by more than $1.1 billion and will receive new exit financing to ensure it will have greater financial flexibility to support its ongoing transformation.
"We were able to reach this key milestone on an accelerated basis thanks to the confidence and support of our financial stakeholders, manufacturer partners and customers," said Stuart Schuette, ATD's CEO. "Through this recapitalization process, we are creating a stronger ATD, with less debt and greater financial flexibility to build on our 80-year history of leadership and innovation.
"Importantly, we continued to deliver strong operating results throughout this process. Our performance reflects the deep value proposition that ATD continues to offer our customers and our manufacturer partners. We look forward to completing this process and remain laser-focused on providing our customers with the unparalleled selection and service they expect from ATD."
Schuette added that ATD's more than 5,000 associates "continue to be the driving force that is enabling ATD to lead change in the industry."
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 more information, read: "Stakeholders Vote to Accept ATD's Reorganization Plan."