EVANSVILLE, Ind. — Accuride Corp. has received approval from the U.S. Bankruptcy Court for key “first day” motions, which will give the company the resources and flexibility to fund on-going uninterrupted operations.
The Court-approved motions include permitting Accuride to pay employee wages, employee benefits, and reimbursable expenses; granting immediate access to $25 million of the company’s $50 million Debtor-in-Possession (DIP) loan; allowing Accuride to honor the terms of key customer programs; and authorizing Accuride to use its existing cash management systems and bank accounts to cover future expenses including supplier payments.
“The prompt approval of our first-day motions solidifies our ability to ensure normal operations at all of our facilities, providing for uninterrupted supply and on-time delivery to our customers,” said Bill Lasky, Accuride’s president, CEO, and chairman of the board. “Today’s court action, establishes a strong basis for us as we move through this process and should provide our employees, customers and suppliers with reassurance that we have the necessary liquidity as we put into place the capital structure for the pursuit and implementation of our strategic initiatives.”
On Oct. 8, Accuride Corp. filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code in the District of Delaware. As a result of the restructuring, the company expects to eliminate a significant portion of its existing debt and emerge as a financially stronger company with a sustainable capital structure.