Wholesale tire supplier American Tire Distributors (ATD) successfully completed its financial recapitalization, reduced its debt by approximately $1.1 billion and emerged from Chapter 11. Wells Fargo Capital Finance provided $1.005 billion in committed exit financing to support operations and future growth initiatives.

In connection with emergence, ATD is issuing payment for all pre-petition obligations currently due. The company recapitalized on a fully consensual basis, with the support of all of its key financial stakeholders, as well as its vendors and customers.

Looking ahead, ATD will continue to create more value for customers and manufacturers through digital tools powered by advanced analytics. The company intends to drive growth, generate strong cash flows and deepen its value proposition for its customers and manufacturer partners by investing in the strategic initiatives, technologies and talent to further fuel its transformation.

“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,” said Stuart Schuette, ATD CEO. “We are laser-focused on delivering greater value for our customers and manufacturer partners, with differentiated capabilities based on advanced analytics. Our ongoing transformation means that ATD will remain the most connected and insightful automotive solutions provider for decades to come.”

Kirkland & Ellis served as legal counsel to ATD, while AlixPartners served as its operational advisor and Moelis & Company as its financial advisor.