Accuride, a leading manufacturer in the global wheel market, has announced plans to restructure its North American business as part of a comprehensive financial overhaul. The company’s restructuring plan follows extended negotiations with its lenders, aiming to reduce funded debt and improve its operational efficiency.
Accuride’s restructuring process includes the filing of a voluntary petition for Chapter 11 bankruptcy by certain U.S. entities. Additionally, Accuride’s Canadian entity has initiated proceedings under the Companies’ Creditors Arrangement Act (CCAA) and will seek approval for a reorganization plan. Notably, Accuride’s subsidiaries in Mexico, Europe, and Asia are not involved in these filings, and all of the company’s plants will continue to operate under normal conditions.
The company’s President and CEO, Robin Kendrick, expressed optimism about the restructuring efforts, stating, “Accuride anticipates a quick emergence from Chapter 11, with a de-levered balance sheet and improved capital structure.” He also emphasized that the reorganization will provide Accuride with the financial flexibility needed to grow and continue supporting its employees, customers, and suppliers.
To ensure smooth operations during the restructuring, Accuride has secured $30 million in Debtor-in-Possession (DIP) financing. This financing agreement, made with the company’s lenders, is structured to maintain liquidity, ensuring Accuride can meet its post-petition obligations to employees, suppliers, and customers. The company is confident this financing will preserve normal trade relations with suppliers and provide reassurance to stakeholders.
Kirkland & Ellis is acting as Accuride’s legal counsel, with Perella Weinberg serving as the investment banker and Alvarez & Marsal advising on restructuring.
Accuride expects to emerge from bankruptcy within 90 to 100 days, backed by a confirmed reorganization plan that will set the stage for the company’s future growth and financial stability.
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