Chassix Holdings, Inc. announced that the United States Bankruptcy Court for the Southern District of New York has indicated that it will enter an order confirming the company’s restructuring and recapitalization plan following a hearing on Jul. 2, 2015.

“The Court’s decision to confirm Chassix’s restructuring and recapitalization plan marks an important milestone in our path to emerge from Chapter 11 as a robust, well-capitalized automotive supplier,” said Mark Allan, Chassix Chief Executive Officer. “This action brings us closer to financial health as we simultaneously work to implement operational improvements that will enhance production, improve cash flows and better position us to support the significant demand for our products. We sincerely appreciate the ongoing support of our customers and suppliers, as well as the unrelenting dedication of our employees, which together have allowed us to continue our operations in the normal course throughout this process.”

The Plan, among other things, provides for a debt-for-equity swap that will significantly reduce the company’s outstanding bond debt and debt payment obligations. The Plan also provides for Chassix to have access to $45 million of additional liquidity from an exit financing facility upon its emergence from Chapter 11.

Weil, Gotshal & Manges LLP is serving as legal counsel and Lazard Freres & Co. LLC is serving as financial advisor to Chassix. FTI Consulting is providing interim management services to Chassix, including operational evaluation, business plan development and strategy implementation.

Chassix represents a $1.4 billion, privately held automotive supplier of precision casting and machining solutions. The brand was launched in 2013 following the integration of the businesses of SMW Automotive, LLC and Diversified Machine, Inc. The company is focused on delivering high-quality, precision ductile iron and aluminum chassis components, with more than 4,500 employees in 26 locations in every key region of the world.