APC Automotive Technologies has entered into a comprehensive restructuring support agreement (RSA) with its creditors.
The agreement, which has broad support from equity holders as well as the company’s asset-based lenders, term loan lenders, and significant financial sponsors, provides for aims to reduce debt by approximately $290 million, while providing $50 million in new financing.
The deal has the support of 74% of its term loan lenders that are eligible to vote, and significant financial sponsors.
Chief executive officer Tribby Warfield said, “The agreement with our lenders and equity sponsors represents their belief in APC’s business and their confidence in its future success. We are fortunate that APC possesses a market-leading underbody portfolio of highly regarded brands, including Centric Parts, StopTech, AP Emissions, Durafit, and Eastern Catalytic, strong market recognition, and an exceptional customer base. Most importantly, we have an amazing team that is committed to providing quality products and excellent service to the industry.”
She said the restructuring was designed to ensure that the company’s ongoing business and service to customers continues without interruption.
“I am confident that the steps we are announcing today will enable the company to further enhance its ability to serve customers and invest in additional growth for years to come.”
To implement the financial restructuring contemplated under the RSA, the company has filed voluntary petitions for reorganization pursuant to chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware.
The company will continue to solicit votes on its plan of reorganization during the chapter 11 filing. Because the company’s plan has already received significant support from its lenders, the company expects to complete the confirmation process and emerge from bankruptcy within the next month.