Sign up for our weekly email to stay on top of the latest news and insights!
Accuride Corporation has announced a debt restructuring agreement to enhance operational efficiency and significantly reduce its funded debt. The restructuring process includes filing for Chapter 11 in the United States and pursuing reorganization proceedings in Canada. Accuride expects this process to be completed within 90-100 days, while maintaining normal operations throughout.
Key Highlights:
- Debt restructuring aims to improve operational efficiency and reduce funded debt.
- Chapter 11 and Canadian CCAA filings initiated for reorganization.
- $30 million in Debtor-in-Possession financing secured to support ongoing operations.
- All plants continue to operate “business as usual.”
Accuride’s restructuring plan is the result of extended negotiations with its lenders, aimed at improving economic efficiency and reducing the company’s debt burden. To complete this process, certain U.S. and Canadian entities of Accuride have filed for bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code and under the Canadian Companies’ Creditors Arrangement Act (CCAA). Notably, the restructuring will not impact Accuride’s operations in Mexico, Europe, or Asia, and all plants are set to continue operations as usual.
To maintain uninterrupted operations during the restructuring, Accuride has secured $30 million in Debtor-in-Possession (DIP) financing. This financing ensures that Accuride can meet its post-petition obligations to employees, suppliers, and customers. The funding is intended to provide stability, enabling Accuride to maintain or restore normal trade terms with its suppliers.
Accuride’s President and CEO, Robin Kendrick, expressed optimism regarding the restructuring: “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. 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.”
The restructuring efforts are being guided by Kirkland & Ellis as legal counsel, Perella Weinberg as the investment banker, and Alvarez & Marsal as the restructuring advisor.
About Accuride Corporation
Accuride Corporation, headquartered in Livonia, Michigan, is a leading supplier of wheel-end systems to the global commercial vehicle industry. Its products include steel and aluminum wheels and wheel-end components for commercial vehicles, as well as steel wheels for European automotive and global agricultural, construction, and industrial equipment markets. Accuride’s brands include Accuride®, Accuride Wheel End Solutions™, Gunite®, and KIC®. The company is a portfolio holding of Crestview Partners. More information can be found at www.AccurideCorp.com.
Subscribe Today!
Sign up for our weekly eNewsletter and get a free copy of our quarterly digital magazine.
