Connect with us

Distribution

American Tire Distributors Reaches Agreement With Bondholders To Reduce Debt By Up To $1.1B

ATD says it has liquidity to meet its business obligations and operations are continuing as normal throughout this process. 

Advertisement

American Tire Distributors (ATD) announced it has reached an agreement in principle with holders of more than 70 percent of its bonds on the terms of a recapitalization transaction that will reduce the company’s debt by up to $1.1 billion and provide financial flexibility as it continues its ongoing transformation. The agreement in principle is subject to various conditions, including finalization of definitive documentation. In conjunction with the recapitalization, ATD says continuing manufacturer partners and trade vendors are expected to be paid in full for existing obligations in the ordinary course for goods and services provided.

Advertisement
Click Here to Read More
Advertisement

In July, ATD announced it would begin downsizing and laying off employees following a loss of revenue after both Goodyear and Bridgestone pulled their passenger and light truck products from the nation’s largest tire distributor. This decision came on the heels of the news that Goodyear and Bridgestone established a joint distribution venture called TireHub.

 

 

“ATD has a strong foundation built on our unparalleled network, unique service offerings and deep relationships with customers and manufacturer partners coupled with a game-changing transformation under way to evolve our business as our industry continues to change. Our journey over the past 18 months has been one of significant progress, and we are now taking steps to strengthen our financial position as we continue our transformation,” said Stuart Schuette, CEO of ATD. “The actions we are taking are intended to reduce our debt and create financial flexibility so we can enhance the strategic initiatives, key technologies and talent that will drive our transformation forward. The agreement we reached with our bondholders reflects their confidence in our business and paves a way for us to implement our recapitalization on an accelerated basis. We are confident in our future, and we look forward to keeping the power of choice alive and providing our customers the most connected and insightful automotive solutions in the industry.”

Advertisement

Schuette added that the company’s commitment to customers will not change. “I want to thank all of our associates for their continued dedication and tireless efforts. They are a winning team, and our unparalleled selling and supply chain organizations are pivotal in helping our customers thrive and drive into the future,” he added.

ATD says it has liquidity to meet its business obligations and operations are continuing as normal throughout this process.

Kirkland & Ellis LLP is serving as legal counsel to ATD, AlixPartners LLP is serving as operational adviser and Moelis & Company LLC is serving as financial adviser.

Advertisement

Loading Post...

Loading Post...

Loading Post...

Advertisement

POPULAR POSTS

Distribution

Auto-Wares To Acquire Select Retail Parts Stores

Distribution

Auto-Wares Announces 2019 Suppliers Of The Year

Distribution

APH Kicks Off 100th Anniversary

Distribution

CARB Fines Major Online Automotive Parts Retailer $1M For Selling Illegal Aftermarket Parts In California

Connect