#United States #Bankruptcy #Huntersville #American Tire #Lender Group

Major Asset Sale by American Tire Distributors

American Tire Distributors, Inc., based in Huntersville, North Carolina, has officially completed the sale of nearly all its assets to a newly formed entity by certain lenders. This strategic move comes as the company navigates through Chapter 11 bankruptcy proceedings, aiming for effective restructuring and stabilization.

Details of the Transaction

The sale effectively transfers substantial ownership to the buyer group, comprised of key stakeholders in the financial sector. The assets that were not included in this transaction will remain under Chapter 11, managed by OldCo Tire Distributors, Inc., the successor entity previously known as American Tire Distributors, Inc. The upcoming Bankruptcy Court hearing is set for March 27, 2025, during which the company will seek approval for its Chapter 11 reorganization plan.

Bankruptcy Proceedings

Accompanying this transition, the company has established a dedicated website to provide court filings and related information to interested parties regarding the Chapter 11 proceedings. This resource is crucial for stakeholders looking to file claims, ensuring transparency during a challenging phase.

Legal and Financial Counsel

The restructuring process is being supported by renowned advisory firms. Kirkland & Ellis LLP and Troutman Pepper Locke LLP are representing OldCo Tire Distributors as legal counsel, while Moelis & Company LLC serves as the principal investment banker. Additionally, AP Services LLC, affiliated with AlixPartners, LLP, is managing restructuring advisement to help navigate through this complex situation effectively.

In contrast, the purchasing entity's interests are safeguarded by Akin Gump Strauss Hauer & Feld LLP as their legal counsel, with Perella Weinberg Partners LP taking on the role of financial advisor.

Communication and Contact

In light of these developments, media inquiries are being handled by a team from Joele Frank, Wilkinson Brimmer Katcher. This team includes Aaron Palash, Richard M. Goldman, and Carly King, who are available for any questions or clarifications.

The financial situation that led to this asset sale and bankruptcy filing highlights the challenges faced by American Tire Distributors in recent times. The strategic choice to sell to a group of lenders indicates a focused intention on recovery and restoration of operational stability. As the company pushes forward, the approval of the Chapter 11 reorganization plan will be a critical next step.

Conclusion

This significant development in the automotive distribution sector is one to watch, as it could set precedents for similar companies navigating Chapter 11 processes. Stakeholders, investors, and competitors will be looking closely at the outcomes of American Tire Distributors' restructuring efforts and how this affects the larger market dynamics in the automotive industry.