. The truck and trailer wheel manufacturer will restructure with the ad hoc committee of holders of its 8.5 percent senior subordinated notes and the steering committee of senior lenders under its credit agreement.
The company's Mexican and Canadian businesses are not included in the bankruptcy filing, and it plans to continue operations at all facilities as usual.
"Accuride expects to quickly emerge from Chapter 11 having rationalized its capital structure and de-levered its balance sheet," said Bill Lasky, Accuride's president, CEO, and chairman of the board. "I believe this restructuring transaction maximizes our financial flexibility and positions Accuride for future growth."
According to the restructuring plan, Accuride will amend its existing credit agreement to modify certain financial covenants and extend its maturity through June 30, 2013. The notes will be cancelled and replaced with 98 percent of the common stock of the revamped company. The new company will also complete a $140 million rights offering of new senior unsecured convertible notes to current noteholders. The new notes will be convertible into 60 percent of the common stock of the reorganized company.
Before the company goes through with the restructuring plan, the company must seek court approval.