Accuride on Wednesday, Oct. 9, announced a proposed restructuring of its North American business. The plan is the result of negotiations with the company's lenders.
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Parts of the company's U.S. entities filed a voluntary petition for Chapter 11 bankruptcy. In Canada, Accuride's Canadian business started a proceeding under the CCAA. All plants will continue to operate as usual, the company says. Accuride is hopeful it will be able to emerge from bankruptcy 90-100 days from filing with a confirmed plan for reorganization.
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"Accuride's reorganization efforts are designed to create a healthier capital structure that will allow the company to remain a leader in the global wheel market," says Robin Kendrick, Accuride president and CEO. "Accuride anticipates a quick emergence from Chapter 11, with a de-levered balance sheet and improved capital structure. I am confident this reorganization will give Accuride the financial flexibility it needs to grow its business and support its employees, customers and suppliers."
The agreement with lenders included $30 million in debtor-in-possession financing to provide Accuride with liquidity to continue normal operations and meet obligations to customers and suppliers.
