(Bloomberg) -- American Tire Distributors Inc., which sought bankruptcy protection in 2018 after the defection of two major manufacturers, has filed for Chapter 11 again as it considers a sale process to cut debt.
The company made the voluntary filing in Delaware, with estimated liabilities and assets of $1 billion to $10 billion each. It has entered into a restructuring support agreement “that contemplates transitioning ownership of the company through a competitive sale process,” according to a statement.
The distributor will continue to operate across its nationwide network. It’s gotten commitments for $250 million in new financing from a so-called ad hoc lender group, as well as access to $1.2 billion in financing from lenders under a pre-petition asset-based lending facility, in the form of post-petition financing credit facilities, according to the release.
American Tire was thrown into disarray in 2018 when the makers of Goodyear and Bridgestone tires decided to deal directly with consumers through their own networks. In what a company executive at that time described as an almost simultaneous blow, Sears Holdings Corp.’s auto centers agreed to install tires bought on Amazon.com.
©2024 Bloomberg L.P.