The U.S. Bankruptcy Court for the District of Delaware has approved Wheel Pros’ (d/b/a Hoonigan) and certain of its North American-based affiliates’, a provider of aftermarket vehicle enhancements, plan of reorganization.
“Today marks an important step toward the successful completion of our financial reorganization,” Vance Johnston, CEO of Hoonigan, said. “With the confirmation of our plan, we are on a clear path to becoming a financially stronger company, well-positioned to invest in innovation and drive sustainable, long-term growth. We are incredibly grateful for the continued support of our financial partners, employees, vendors and customers through this process, and are excited to drive ahead under new ownership equipped with the financial resources and flexibility to lead our industry forward.”
Through the approved plan, Hoonigan will eliminate approximately $1.2 billion of the company’s debt and is working to secure access to a $175 million asset-backed loan facility. Upon emergence, the company will be under the majority ownership of Strategic Value Partners (SVP) and Nut Tree Capital Management.
The transactions contemplated under the plan remain subject to customary closing conditions. The company will continue to operate in the ordinary course of business for its customers, vendors and partners as it progresses toward a successful emergence.
The court also approved the sale of the company’s 4 Wheel Parts retail stores, associated e-commerce sites and certain other related assets to ORW USA, the U.S. affiliate of ARB. Hoonigan will continue to operate 4WP in the normal course through close of the sale, which is expected in the coming days.
Kirkland & Ellis and Pachulski Stang Ziehl & Jones are serving as legal counsel, Houlihan Lokey, is serving as investment banker, Alvarez & Marsal is serving as financial advisor, and C Street Advisory Group is serving as strategic communications advisor to the company. Davis Polk & Wardwell is serving as legal counsel and Lazard is serving as investment banker to SVP. Akin Gump Strauss Hauer & Feld is serving as legal counsel and PJT Partners is serving as investment banker to Nut Tree and certain other of the company’s current lenders.
