American Tire Distributors Receives Virtually Unanimous Support for its Plan of Reorganization

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Dec 17, 2018, 18:01 ET

HUNTERSVILLE, N.C., Dec. 17, 2018 /PRNewswire/ -- American Tire Distributors, Inc. ("ATD" or the "Company") today announced the voting results for its Chapter 11 Plan of Reorganization (the "Plan"). The near unanimous acceptance of the Plan by voting stakeholders reflects the overwhelming support for the Company's plan and reorganization efforts. The Plan received approval from each class of creditors and holders of interests entitled to vote, far exceeding the required thresholds, including 100% of voting term loan lenders, 98% of voting bondholders, and 100% of voting shareholders.

"The voting results we are announcing today reflect the strong confidence that our financial stakeholders have in ATD's business and the actions we are taking to lead our industry forward," said Stuart Schuette, Chief Executive Officer of ATD. "The support of our financial stakeholders has enabled us to move through this process on an expedited basis. We are now entering the final phase of this process and are poised to move forward as a stronger company that is even better positioned to help our customers continue thriving and driving into the future."

The Company's recapitalization will reduce its debt by more than $1.1 billion and provide the Company with new exit financing to support its ongoing operations. A confirmation hearing on the Plan is scheduled to occur on December 19, 2018.

Kirkland & Ellis LLP is serving as legal counsel to ATD, AlixPartners LLP is serving as operational advisor and Moelis & Company LLC is serving as financial advisor.

Additional information is available on ATD's restructuring website at www.ATDrecapitalization.com or by calling ATD's restructuring hotline, toll-free in the U.S., at (866) 967-0495. For calls originating outside of the U.S., please dial +1 (310) 751-2695. Questions can also be submitted by email to [email protected]. Court filings and other documents related to the court-supervised proceedings are available on a separate website administered by ATD's claims agent, KCC, at www.kccllc.net/ATD.

This press release is not intended to be, and should not in any way be construed as, a solicitation of votes regarding the Plan.

About American Tire Distributors

American Tire Distributors is one of the largest independent suppliers of tires to the replacement tire market. It operates more than 140 distribution centers, including 25 distribution centers in Canada, serving approximately 80,000 customers across the U.S. and Canada. The Company offers an unsurpassed breadth and depth of inventory, frequent delivery and value-added services to tire and automotive service customers. American Tire Distributors employs approximately 5,000 associates across its distribution center network, including approximately 800 associates in Canada.

Media Contacts

Jessica Kessel
Director, Corporate Communications, ATD
(704) 912-3495
[email protected]

Ed Trissel / Aaron Palash / Andrew Squire
Joele Frank Wilkinson Brimmer Katcher
(212) 355-4449

SOURCE American Tire Distributors