APC Automotive Technologies wins confirmation of pre-packaged plan

By Caroline Salls

Pittsburgh, July 10 – APC Automotive Technologies, LLC’s amended pre-packaged plan of reorganization was confirmed Friday by the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, APC filed bankruptcy to implement a restructuring supported by its asset-based lenders, 74% of eligible term loan lenders and financial sponsors.

APC said the restructuring transaction included in the support agreement will reduce its outstanding debt by $290 million on a net basis, significantly strengthening the company’s balance sheet and enhancing financial flexibility going forward.

Under the plan, the company’s pre-bankruptcy ABL facility will roll into, or be refinanced by, an ABL debtor-in-possession facility and upon the plan effective date, an ABL exit facility.

Holders of term A claims will receive a share of 100% of the new common equity in the reorganized company, subject to dilution by new warrants, a DIP fee and a management incentive plan.

All term B claims will be deemed cancelled and extinguished with no distribution to holders, provided, however, that any term B claimholder that is a consenting term loan lender or that otherwise votes in favor of the plan will receive a share of new warrants.

Holders of existing equity interests will not be entitled to any distribution.

All other outstanding and undisputed claims will be unimpaired by the restructuring.

A new management incentive plan will award up to 10% of the new common equity to participants.

APC Automotive Technologies is a Goldsboro, Colo., supplier of automotive, light truck and heavy-duty undercar replacement parts. The company filed bankruptcy on June 3 under Chapter 11 case number 20-11466.

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