APC Automotive Technologies plan of reorganization effective July 24

By Caroline Salls

Pittsburgh, July 27 – APC Automotive Technologies, LLC said it successfully implemented the restructuring set out in its restructuring support agreement with the company’s asset-based lenders, term loan lenders and significant equityholders, with its plan of reorganization taking effect on Friday, according to a news release.

The plan was confirmed on July 10 by the U.S. Bankruptcy Court for the District of Delaware.

As part of the restructuring, APC said it has reduced the debt on its balance sheet by more than $290 million and secured a new $50 million senior secured term loan to finance its go-forward operations.

Under the plan, the company’s pre-bankruptcy ABL facility will roll into, or be refinanced by, an ABL debtor-in-possession facility and an ABL exit facility.

Holders of term A claims will receive a share of 100% of the new common equity in the reorganized company, subject to dilution by new warrants, a DIP fee and a management incentive plan.

All term B claims will be deemed cancelled and extinguished with no distribution to holders, provided, however, that any term B claimholder that is a consenting term loan lender or that otherwise voted in favor of the plan will receive a share of new warrants.

Holders of existing equity interests will not be entitled to any distribution.

All other outstanding and undisputed claims will be unimpaired by the restructuring.

A new management incentive plan will award up to 10% of the new common equity to participants.

The current management team, including chief executive officer Tribby Warfield, will continue to lead the company and advance its strategic, operational and growth transformation initiatives.

“As we said at the outset of this process, this milestone reflects our continued confidence and that of our stakeholders that we are on track for sustainable, long-term success,” Warfield said in the release.

Kirkland & Ellis LLP, Jefferies LLC and WeinsweigAdvisors LLC served as advisers to the company through the restructuring.

APC Automotive Technologies is a Goldsboro, Colo., supplier of automotive, light truck and heavy-duty undercar replacement parts. The company filed bankruptcy on June 3 under Chapter 11 case number 20-11466.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.