Accuride Receives Court Final Approval for Access to $50 Million DIP Financing
November 03 2009 - 8:30AM
Business Wire
Accuride Corporation (OTCBB: AURDQ) today announced that it has
received final approval from the U.S. Bankruptcy Court (Court) of
its $50 Million Debtor in Possession (DIP) financing agreement.
The Court also granted final approval on other motions,
including:
- Permitting Accuride to pay
certain employee wages, employee benefits, and reimbursable
expenses;
- Authorizing Accuride’s use of
existing cash management systems and bank accounts;
- Allowing Accuride to pay certain
pre-petition obligations;
- Allowing Accuride to assume the
Convertible Notes Commitment Agreement, associated with the
pre-negotiated restructuring plan; and
- Establishing November 30, 2009,
as the Bar Date for filing Proofs of Claim.
The Company also announced that it had scheduled the hearing at
which the Court will consider confirmation of the plan of
reorganization for February 10, 2010.
“We are very pleased with the cooperation of our lenders and
suppliers,” stated Jim Woodward, Accuride’s Senior Vice President
and Chief Financial Officer. “It has been business as usual for our
customers and employees. Most of our top vendors have returned to
normal trade terms and we especially appreciate those who never
changed. Our cost reduction activities remain on track and we are
seeing the benefit of those improvements. We remain optimistic that
we will emerge quickly as a financially stronger partner.”
On October 8, 2009, Accuride Corporation filed a voluntary
petition for relief under Chapter 11 of the U.S. Bankruptcy Code in
the District of Delaware. As a result of the restructuring, the
Company expects to eliminate a significant portion of its existing
debt and emerge as a financially stronger company with a
sustainable capital structure.
Accuride Corporation is one of the largest and most
diversified manufacturers and suppliers of commercial vehicle
components in North America. Accuride’s products include commercial
vehicle wheels, wheel-end components and assemblies and other
commercial vehicle components. Accuride’s products are marketed
under its brand names, which include Accuride, Gunite, Imperial,
Bostrom, Fabco, Brillion, and Highway Original. For more
information, visit Accuride’s website at www.accuridecorp.com.
Forward-looking
statements
Statements contained in this news release that are not purely
historical are forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended, including
statements regarding Accuride’s expectations, hopes, beliefs and
intentions with respect to the proposed restructuring transaction
and its proposed new capital structure. Accuride’s actual future
results could differ materially from those expressed or implied in
such forward-looking statements, and such statements are subject to
a number of risks, uncertainties and other factors. These factors
include, among other things, whether Accuride is able to obtain
bankruptcy court approval for the restructuring transaction,
potential loss of support for the restructuring transaction by the
senior lenders or noteholders, non-acceptance of the restructuring
transaction by other Accuride stakeholders, delays in the
confirmation or effective date of the restructuring transaction,
failure to meet certain restructuring transaction objectives and
milestones, otherwise being unable to consummate the restructuring
transaction and whether Accuride determines that another
restructuring alternative provides greater value to Accuride and
its stakeholders. In addition, such statements are subject to the
impact on Accuride’s business and prospects generally of, among
other factors, market demand in the commercial vehicle industry,
general economic, business and financing conditions, labor
relations, governmental action, competitor pricing activity,
expense volatility and other risks detailed from time to time in
Accuride’s Securities and Exchange Commission filings, including
those described in Item 1A of Accuride’s Annual Report on Form 10-K
for the fiscal year ended December 31, 2008. Any forward-looking
statement reflects only Accuride’s belief at the time the statement
is made. Although Accuride believes that the expectations reflected
in these forward-looking statements are reasonable, it cannot
guarantee its future results, levels of activity, performance or
achievements. Except as required by law, Accuride undertakes no
obligation to update any forward-looking statements to reflect
events or developments after the date of this news release.