American Tire Distributors final financing approval hearing cancelled

By Caroline Salls

Pittsburgh, Oct. 25 – The American Tire Distributors, Inc. debtor-in-possession financing agreement scheduled for Oct. 26 has been cancelled, according to an amended agenda filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

According to the agenda, “A final form of order has been filed under certification of counsel, and counsel requests entry of the order at the court’s convenience.”

Earlier this month, American Tire obtained court approval to access $250 million in DIP financing on an interim basis.

The DIP financing will mature on Oct. 5, 2019.

Interest on ABL loans will accrue at a rate of either the alternate Base rate plus 150 basis points or Libor plus 250 bps. Junior first-in, last-out loans will bear interest at either the alternate Base rate plus 800 bps or Libor plus 900 bps.

American Tire is a Huntersville, N.C.-based replacement tire distributor. The company filed bankruptcy on Oct. 4 under Chapter 11 case number 18-12221.

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