Accuride intends to restructure its North American business. Through the proposed restructuring, the result of extended negotiations with its lenders, Accuride intends to facilitate economic improvements for operations and reduce funded debt from its balance sheet.
To complete the proposed restructuring, certain of Accuride’s U.S. entities filed a voluntary petition for protection under chapter 11 of the U.S. Bankruptcy Code, and Accuride’s Canadian entity commenced a proceeding under the CCAA and will seek approval for a proposed plan of reorganization. Accuride’s Mexican, European and Asian subsidiaries are not included in these filings. All plants will continue to operate “business as usual.” With this agreement, Accuride is hopeful that it will be able to emerge from bankruptcy on an expedited basis, anticipated to be 90 – 100 days from filing, with a confirmed plan of reorganization.
To ensure that Accuride will continue conducting its business in the ordinary course without interruption, Accuride’s agreement with its lenders provides it with $30 million in debtor-in-possession financing, which is structured to provide sufficient liquidity to continue normal operations and meet post-petition obligations to employees, suppliers and customers as they come due.
“Accuride’s reorganization efforts are designed to create a healthier capital structure that will allow the company to remain a leader in the global wheel market,” Robin Kendrick, president and CEO of Accuride, said. “Accuride anticipates a quick emergence from chapter 11, with a de-levered balance sheet and improved capital structure. I am confident this reorganization will give Accuride the financial flexibility it needs to grow its business and support its employees, customers and suppliers.”
Kirkland & Ellis is serving as legal counsel to Accuride, along with Perella Weinberg as Investment Banker and Alvarez & Marsal as restructuring advisor.
