American Tire Distributors Inc. (ATD) has announced the voting results for its Chapter 11 Plan of Reorganization. The company said the near unanimous acceptance of the Plan by voting stakeholders reflects the overwhelming support for the company’s plan and reorganization efforts. The Plan received approval from each class of creditors and holders of interests entitled to vote, far exceeding the required thresholds, including 100 percent of voting term loan lenders, 98 percent of voting bondholders and 100 percent of voting shareholders.
“The voting results we are announcing today reflect the strong confidence that our financial stakeholders have in ATD’s business and the actions we are taking to lead our industry forward,” said Stuart Schuette, CEO of ATD. “The support of our financial stakeholders has enabled us to move through this process on an expedited basis. We are now entering the final phase of this process and are poised to move forward as a stronger company that is even better positioned to help our customers continue thriving and driving into the future.”
The company’s recapitalization will reduce its debt by more than $1.1 billion and provide the company with new exit financing to support its ongoing operations. A confirmation hearing on the Plan is scheduled to occur on Dec. 19.
Kirkland & Ellis LLP is serving as legal counsel to ATD, AlixPartners LLP is serving as operational adviser and Moelis & Co. LLC is serving as financial adviser.
Additional information is available on ATD’s restructuring website at ATDrecapitalization.com.
