American Tire Distributors (ATD, Financial), the world's largest tire distributor, has filed for bankruptcy protection once more to reduce its debt. The company filed voluntarily in Delaware, estimating its liabilities and assets to be between $1 billion and $10 billion. ATD has reached a restructuring support agreement and is considering transferring ownership through a competitive sales process.
The distributor will continue its operations across its national network. According to a press release, ATD has secured a new $250 million financing commitment from a special-purpose lending entity. Additionally, it has arranged $1.2 billion in financing from lenders through an asset-based pre-petition loan facility in the form of post-petition credit facilities.
ATD previously filed for bankruptcy in 2018 after major tire manufacturers Goodyear and Bridgestone opted to sell directly through their own networks, bypassing ATD's distribution channels.
