American Tire Distributors, Inc. completed its financial recapitalization and emerged from Chapter 11 bankruptcy.
American Tire Distributors, Inc. (ATD) announced that the United States Bankruptcy Court for the District of Delaware has confirmed the company’s plan of reorganization.
American Tire Distributors, Inc.’s plan for Chapter 11 reorganization will go before the court for approval this week, and has already gained near-unanimous acceptance by voting stakeholders, the company said.
With more than $600 million in debt to its top vendors, American Tire Distributors (ATD) and its subsidiaries have been granted interim permission by the court to allow them to pay back some of that debt to “critical vendors” during its Chapter 11 restructuring.
If you’re a Tire Pros dealer or part of the ATD network, we’ve answered a few common questions you could be asking about how ATD’s critical vendor filing may affect your business.
American Tire Distribitors’ top 30 creditors, many of which are tire manufacturers, are combined owed over $600 million from the nation’s largest tire distributor.
Tire Review Editor Patti Hoying says that ATD filing for Chapter 11 bankruptcy is a move that, overall, is a positive one, for dealers.
Stuart Schuette, ATD’s CEO and president, sent a letter to its Tire Pros dealers regarding American Tire Distributors filing for Chapter 11 bankruptcy, reassuring them that it will be “business as usual” with no lapse in service or commitment to them throughout the process.