Chassix reaches deal to amend plan to enhance recoveries, swap debt

By Caroline Salls

Pittsburgh, June 22 – Chassix Holdings, Inc. and its U.S. subsidiaries reached agreement with the official committee of unsecured creditors, the company’s existing private equity sponsor and an informal group representing more than 73% of Chassix’s secured and 80% of its unsecured bondholders regarding the terms of a modified restructuring and recapitalization plan, according to a news release.

Chassix said the agreement, which will result in enhanced recoveries to general unsecured creditors and unsecured noteholders, resolves potential objections to the plan by the committee and moves the company one step closer to confirmation of the modified plan.

In addition, the company said the plan calls for a debt-for-equity swap that will significantly reduce its outstanding bond debt and debt payment obligations.

“We believe there is now a clear path to complete Chassix’s restructuring and recapitalization and emerge from Chapter 11 this summer,” chief executive officer Mark Allan said in the release.

“The progress we are making in our restructuring has been further supported by our ability to improve our performance across our operations.”

The company said the terms of the agreement are to be incorporated on June 23 into a modified and related disclosure statement. The original disclosure statement was approved by the U.S. Bankruptcy Court for the Southern District of New York. A hearing for the court to consider confirmation of the modified plan is scheduled to begin on July 2.

According to the release, the modified plan is supported by about 80% of the company’s unsecured bondholders and 73% of its senior secured bondholders, as well as the creditors committee, the existing sponsor and all of Chassix’s largest customers.

Chassix, a Southfield, Mich.-based manufacturer and supplier of aluminum and iron chassis sub-frame components, including steering knuckles, control arms, sub-frames and assemblies, filed for bankruptcy on March 12. The Chapter 11 case number is 15-10578.

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