Accuride's North America affiliates announced that the United States Bankruptcy Court for the District of Delaware confirmed the Company's Chapter 11 Plan of Reorganization and Accuride expects to emerge from Chapter 11 in the coming weeks.
The Plan refocuses the business on the Company's core North American wheels segment and strengthens its balance sheet via the equitization of over $400 million of funded debt and restructuring of approximately $170 million of additional obligations. In conjunction with the recapitalization, Accuride will receive a significant new investment from its existing investors in the form of a $70 million asset-based lending facility and $85+ million exit facility, both of which are designed to bolster liquidity and support long-term growth.
"The confirmation of our reorganization plan marks the near conclusion of our restructuring process, positioning Accuride to emerge from Chapter 11 as a stronger company, well-positioned for long-term success," said Robin Kendrick, Accuride's President & CEO. "With the support of our lenders, we are excited about our strengthened capital structure, which provides the financial foundation upon which to sustainably continue our growth and success as a North American wheel company in 2025 and beyond. We look forward to continuing to serve our team members, customers, suppliers, and all stakeholders in the bright future we have ahead."
The confirmed Plan was supported by a substantial majority of Accuride's financial and operational stakeholders, including Crestview, its financial sponsor; 100% of its prepetition term loan / DIP lenders who voted on the Plan; 100% of its ABL lenders; and the unsecured creditors' committee that includes the United Auto Workers union, Pension Benefit Guaranty Corporation, and key suppliers.
Kirkland & Ellis is serving as legal counsel, Perella Weinberg is serving as investment banker and Alvarez & Marsal is serving as restructuring advisor to Accuride. The members of the ad-hoc group of lenders are represented by Weil, Gotshal & Manges LLP as legal counsel and Lazard as investment banker.