It looks like Accuride Corporation is on its way to emerging from Chapter 11, as the United States Bankruptcy Court for the District of Delaware confirmed the company's plan for reorganization.
The new plan should take effect around Feb. 26, 2010.

"The reorganization plan will allow Accuride to emerge from Chapter 11, after only five months, with the financial flexibility necessary to ensure the continued pursuit of our strategic objectives," said Bill Lasky, Accuride's president, CEO, and chairman of the Board. "This new capital structure, coupled with the significant operational restructuring initiatives we have implemented, will position the Company for future growth and the continued leadership of our brands."

In October, the company's U.S. entities filed for bankruptcy protection and proposed a restructuring plan, which included an amendment to 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.

"We are extremely grateful for the loyalty and support of our customers, suppliers, and lenders as we moved through the restructuring process," said Lasky. "I cannot speak highly enough of our team members whose dedication ensured the continued safe production and on-time delivery of quality product, allowing the Company to maintain strong customer relationships, secure new business, and introduce new products to the market."