APC Automotive Technologies and some of its subsidiaries have recently entered a comprehensive RSA (Restructuring Support Agreement) with key stakeholders. These stakeholders include asset-based lenders, significant financial sponsors, and 74% of the term loan lenders who are eligible voters.
The anticipated restructuring transaction under the agreement will significantly lower the outstanding indebtedness of the company by nearly $290 million on an annual basis. The RSA will also strengthen the balance sheet of the company and further enhance its financial flexibility. In addition, the agreement will include the RSA Parties’ commitment to aid a comprehensive restructuring of the balance sheet of APC.
According to Tribby Warfield, Chief Executive Officer of APC Automotive Technologies, the recently entered deal with equity sponsors and lenders highlights their concentration and emphasis on the future growth of the company’s business. The company has a vast market-leading underbody portfolio with highly recognized brands such as Eastern Catalytic®, Durafit®, AP Emissions®, StopTech®, and Centric Parts®, powered by its team of experts offering excellent services and products. She further added that the deal was designed to advance the ongoing service and business without interruption to efficient service of customers.
APC also filed voluntary petitions to the U.S. Bankruptcy Court for the Delaware District to implement this financial restructuring deal on 3rd June, due to its pursuant to the U.S. Bankruptcy Code’s chapter 11. It will continuously solicit votes for its reorganization plan during the filing. Owing to the significant support from the lenders on the reorganization plan, the company is anticipating the completion of the confirmation process and emergence from bankruptcy within the month of July.
Additionally, APC also entered a deal with some of the existing term loan lenders to offer additional financing of $50 million in the debtor-in-possession financing form to ensure uninterrupted operations.
WeinsweigAdvisors LLC, Jefferies LLC, and Kirkland & Ellis LLP served as advisors for APC. FTI Consulting and King & Spalding LLP-represented term loan lender group and White & Case LLP-represented financial sponsors are among RSA Parties.