Accuride Corporation (NYSE:ACW)

We have stumbled upon another company that has emerged from chapter 11 bankruptcy:

On October 8, 2009, Accuride’s U.S. entities filed a voluntary petition for protection under Chapter 11 of the U.S. Bankruptcy Code in the District of Delaware. On February 26, 2010, the Company emerged from Chapter 11 with a new capital structure. Additional information surrounding the Company’s restructuring including details of the Plan is available at www.accurideinfo.com.

Plan Details:

The Plan provides for a restructuring of:

• Approximately $308.2 million of “first-out” senior indebtedness outstanding under the Company’s Fourth Amended and Restated Credit Agreement, dated as of January 31, 2005.
  
• Approximately $70.1 million of indebtedness under the “last-out” term loans currently outstanding under the Prepetition Credit Agreement and held by an affiliate of Sun Capital Partners.
  
• Approximately $291 million of indebtedness outstanding under the Company’s 8.5% Senior Subordinated Notes due 2015 issued pursuant to the Indenture dated January 31, 2005.
  
• Accuride’s pre-organization outstanding common stock was cancelled.  The Company issued the following securities ($147 million shares fully diluted):
  
  • 98 million shares of common stock, par value $0.01 per share to holders of the Senior Subordinated Notes;
    
  • 25 million shares of Common Stock to the Backstop Parties as payment of the Backstop Fee pursuant to the Convertible Notes Commitment Agreement;
      
  • 2 million shares of Common Stock to the Company’s equity holders, and Warrants to purchase 22,058,824 shares of Common Stock to the Company’s equity holders that will be effective for two years. Exercise price is $2.10.

The GeoTeam® is waiting for the company to release its 2009 year end numbers which should include ProForma financials, post chapter 11.

Comments from the company make Accuride worth tacking:

"Accuride's debt restructuring efforts are designed to create a sustainable capital structure that will support greater profitability and solidify the Company's position as the market leader in its product categories," said Bill Lasky, Accuride's President, CEO, and Chairman of the Board. "Accuride expects to quickly emerge from Chapter 11 having rationalized its capital structure and de-levered its balance sheet. I believe this restructuring transaction maximizes our financial flexibility and positions Accuride for future growth."

ACUZ Joins SPEB, PMUG & CCMM to our recent list of firms, or "fallen angels", that have exited chapter 11