Accuride receives court approval for DIP financing
On Oct. 8, Accuride 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 said it expects to eliminate a significant portion of its existing debt and emerge as a financially stronger company with a sustainable capital structure.
The Trucker News Services
11/4/2009
EVANSVILLE, Ind. Accuride Corp. said Nov. 3 that it has received final approval from the U.S. Bankruptcy Court of its $50 Million debtor in possession (DIP) financing agreement.
The Court also granted final approval on other motions, including:
? permitting Accuride to pay certain employee wages, employee benefits, and reimbursable expenses;
? authorizing Accuride’s use of existing cash management systems and bank accounts;
? allowing Accuride to pay certain pre-petition obligations;
? allowing Accuride to assume the Convertible Notes Commitment Agreement, associated with the pre-negotiated restructuring plan; and
? establishing Nov. 30 as the bar date for filing proofs of claim.
The company also announced that it had scheduled the hearing at which the Court will consider confirmation of the plan of reorganization for February 10, 2010.
“We are very pleased with the cooperation of our lenders and suppliers,” stated Jim Woodward, Accuride’s senior vice president and chief financial officer. “It has been business as usual for our customers and employees. Most of our top vendors have returned to normal trade terms and we especially appreciate those who never changed. Our cost reduction activities remain on track and we are seeing the benefit of those improvements. We remain optimistic that we will emerge quickly as a financially stronger partner.”
On Oct. 8, Accuride 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 said it expects to eliminate a significant portion of its existing debt and emerge as a financially stronger company with a sustainable capital structure.
Accuride Corp. is one of the largest and most diversified manufacturers and suppliers of commercial vehicle components in North America. Accuride’s products include commercial vehicle wheels, wheel-end components and assemblies and other commercial vehicle components. Accuride’s products are marketed under its brand names, which include Accuride, Gunite, Imperial, Bostrom, Fabco, Brillion, and Highway Original.
Kevin Jones of The Trucker staff can be reached for comment at kevinj@thetrucker.com.
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