American Tire Distributors Receives Bankruptcy Court Approval for Sale to Lender Group
American Tire Distributors, Inc. (ATD) has reached a significant milestone with the approval from the U.S. Bankruptcy Court for the District of Delaware regarding the sale of the majority of its assets. The court's decision positions the company to finalize its sale transaction by February 28, 2025, contingent upon standard closing requirements. According to Michael Feder, the Interim CEO of ATD and Partner Managing Director at AP Services, LLC, this approval signifies a crucial closing step in the ongoing sale process.
The agreement follows a comprehensive and competitive sale strategy that ATD has navigated over the preceding months. Feder expressed confidence that this arrangement is the optimal route for the company and all its stakeholders involved. By transitioning ownership to a buyer group formed by some of the company's existing lenders, ATD aims to enhance its relationships with manufacturers and customers as it continues its operations.
Acknowledging the support from both manufacturer partners and customers throughout the challenging bankruptcy process, Feder emphasized the commitment to maintaining high service levels during the transition. He extended his gratitude to ATD’s associates for their diligence and dedication, affirming that the company is focused on providing uninterrupted service during this period.
In light of the chapter 11 proceedings, stakeholders are encouraged to visit a dedicated website managed by the company's claims agent, Donlin Recano & Company, LLC, for court filings and other pertinent details. Any inquiries regarding proof of claims can be directed to their toll-free number or via email, ensuring that all parties have access to the necessary information about the ongoing proceedings.
ATD, a leading independent tire distributor in the U.S., services approximately 80,000 customers through a network of over 115 distribution centers. With a workforce of around 4,500 employees, the company prides itself on delivering an extensive inventory, prompt delivery, and value-added services. Recognized for its commitments to environmental sustainability and service excellence, ATD has garnered accolades including the Environment+Energy Leader Award and multiple Stevie® Awards in various categories.
Legal advisory for the company during the sale process has been provided by Kirkland & Ellis LLP, while Moelis and Company LLC is acting as its investment banker, and AP Services LLC functions as the restructuring advisor.
The purchasers are being represented by Akin Gump Strauss Hauer & Feld LLP and Perella Weinberg Partners LP, while the ABL lenders are advised by Otterbourg P.C. and Carl Marks & Co. This robust advisory framework underscores the complexity and importance of this transaction in the tire distribution sector.
As ATD moves forward, stakeholders and customers alike are optimistic about the future under new ownership, hoping for improved partnerships and service outcomes in the tire distribution landscape. Overall, the court's approval marks a hopeful turning point for American Tire Distributors as it seeks to transition smoothly into a new era of service and collaboration.
The agreement follows a comprehensive and competitive sale strategy that ATD has navigated over the preceding months. Feder expressed confidence that this arrangement is the optimal route for the company and all its stakeholders involved. By transitioning ownership to a buyer group formed by some of the company's existing lenders, ATD aims to enhance its relationships with manufacturers and customers as it continues its operations.
Acknowledging the support from both manufacturer partners and customers throughout the challenging bankruptcy process, Feder emphasized the commitment to maintaining high service levels during the transition. He extended his gratitude to ATD’s associates for their diligence and dedication, affirming that the company is focused on providing uninterrupted service during this period.
In light of the chapter 11 proceedings, stakeholders are encouraged to visit a dedicated website managed by the company's claims agent, Donlin Recano & Company, LLC, for court filings and other pertinent details. Any inquiries regarding proof of claims can be directed to their toll-free number or via email, ensuring that all parties have access to the necessary information about the ongoing proceedings.
ATD, a leading independent tire distributor in the U.S., services approximately 80,000 customers through a network of over 115 distribution centers. With a workforce of around 4,500 employees, the company prides itself on delivering an extensive inventory, prompt delivery, and value-added services. Recognized for its commitments to environmental sustainability and service excellence, ATD has garnered accolades including the Environment+Energy Leader Award and multiple Stevie® Awards in various categories.
Legal advisory for the company during the sale process has been provided by Kirkland & Ellis LLP, while Moelis and Company LLC is acting as its investment banker, and AP Services LLC functions as the restructuring advisor.
The purchasers are being represented by Akin Gump Strauss Hauer & Feld LLP and Perella Weinberg Partners LP, while the ABL lenders are advised by Otterbourg P.C. and Carl Marks & Co. This robust advisory framework underscores the complexity and importance of this transaction in the tire distribution sector.
As ATD moves forward, stakeholders and customers alike are optimistic about the future under new ownership, hoping for improved partnerships and service outcomes in the tire distribution landscape. Overall, the court's approval marks a hopeful turning point for American Tire Distributors as it seeks to transition smoothly into a new era of service and collaboration.
Topics Consumer Products & Retail）
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