LIVONIA, Mich., Oct. 9, 2024 /PRNewswire/ — Accuride today announced its intention to restructure its North American business. The proposed restructuring, the result of extended negotiations with its lenders, will facilitate economic improvements for operations and significantly reduce funded debt from Accuride’s balance sheet.
To complete the proposed restructuring, today, certain of Accuride’s U.S. entities filed a voluntary petition for protection under Chapter 11 of the U.S. Bankruptcy Code and Accuride’s Canadian entity commenced a proceeding under the CCAA and will seek approval for a proposed plan of reorganization. Accuride’s Mexican, European, and Asian subsidiaries are not included in these filings. All plants will continue to operate “business as usual.” With this agreement, Accuride is hopeful that it will be able to emerge from bankruptcy on an expedited basis, anticipated to be 90-100 days from filing, with a confirmed plan of reorganization.
To ensure that Accuride will continue conducting its business in the ordinary course without interruption, Accuride’s agreement with its lenders provides it with $30 million in Debtor-in-Possession financing, which is structured to provide sufficient liquidity to continue normal operations and meet post-petition obligations to employees, suppliers, and customers as they come due. This financing is intended to provide peace of mind to Accuride’s customers and suppliers and allow the Company to maintain or restore normal trade terms with suppliers.
“Accuride’s reorganization efforts are designed to create a healthier capital structure that will allow the Company to remain a leader in the global wheel market,” said Robin Kendrick, Accuride’s President and CEO. “Accuride anticipates a quick emergence from Chapter 11, with a de-levered balance sheet and improved capital structure. I am confident this reorganization will give Accuride the financial flexibility it needs to grow its business and support its employees, customers, and suppliers.”
Kirkland & Ellis is serving as legal counsel to Accuride, along with Perella Weinberg as Investment Banker and Alvarez & Marsal as restructuring advisor.
About Accuride Corporation
Accuride Corporation is a leading supplier of wheel end systems to the global commercial vehicle industry and has its world headquarters in Livonia, Michigan, USA. The company’s products include steel and aluminum commercial vehicle wheels and wheel-end components and assemblies; and steel wheels for the European automotive and global agricultural, construction and industrial equipment markets. The company’s products are marketed under its brand names, which include Accuride®, Accuride Wheel End Solutions™, Gunite®, and KIC®. Accuride is a portfolio company of Crestview Partners. For more information: www.AccurideCorp.com
