Sep
05
American Tire Debt Plan Includes Possible Bankruptcy
By-
ATD said Tuesday it reached deal on recapitalization
- Proposal is said to hand control of company to bondholders
American Tire Distributors Inc. is considering a bankruptcy filing as part of a proposed $2.4 billion debt overhaul, according to people with knowledge of the matter.
The deal would give holders of ATD’s subordinated bonds a 95 percent stake in the reorganized company, wiping out that debt while leaving its term loan outstanding, said the people, who asked not to be identified because the discussions are private. The tire distributor skipped an interest payment on the junior notes, kicking off a 30-day grace period before a default is triggered…
