A recent court filing says that the auction of American Tire Distributors Inc. (ATD) has been canceled and a winning bidder for the company has been chosen.
The document, filed in the United States Bankruptcy Court For the District of Delaware on Jan. 12, states that ATD’s debtors, “in consultation with the Consultation Parties and pursuant to the Bidding Procedures Order, selected (ATD’s) Stalking Horse Bidder as the winning bidder” for ATD’s assets.
The winning bidder, an entity called Asphalt Buyer LLC, “is an entity formed by certain of the Debtors’ DIP Lenders and lenders under the Debtors’ Prepetition Term Loans, in connection with the sale of substantially all of the Debtors’ assets, as set forth in the Stalking Horse APA.”
Debtors include American Tire Distributors Inc.; ATD New Holdings II Inc.; ATD New Holdings III Inc.; ATD New Holdings Inc.; ATD Sourcing Solutions, LLC; ATD Technology Solutions Inc.; FLX FWD Logistics LLC; Hercules Tire International Inc.; Terry’s Tire Town Holdings LLC; The Hercules Tire & Rubber Company; Tire Pros Francorp LLC; Tirebuyer.com LLC; and Torqata Data and Analytics LLC.
The filing also stated that “as of the date hereof, the Debtors have not received any bids that were determined to be Qualified Bids pursuant to the Bidding Procedures Order other than the Stalking Horse Bid.
“Accordingly, in consultation with the Consultation Parties and pursuant to the Bidding Procedures Order, the Debtors hereby cancel the Auction.
“Please take further notice that the Debtors, in consultation with the Consultation Parties and pursuant to the Bidding Procedures Order, selected the Stalking Horse Bidder as the winning bidder (the “Winning Bidder”) for the Acquired Assets (as defined in the Stalking Horse APA).
“The Stalking Horse APA provides for: (i) a “credit bid” pursuant to section 363(k) of the Bankruptcy Code of (x) 100% of the New Money DIP Claims, including accrued and unpaid interest as of the Closing Date, and (y) $585 million of the Prepetition Term Loan Claims (each as defined in the Stalking Horse APA); and (ii) the assumption of the Assumed Liabilities (as defined in the Stalking Horse APA).”
The debtors “intend to file a proposed form of Sale Order (the ‘Sale Order’) prior to the Sale Hearing to obtain the Court’s authorization to, among other things, consummate the Sale Transaction and enter into the Stalking Horse APA. The Debtors will seek approval of the Sale Transaction at the Sale Hearing to be held before the Honorable Craig T. Goldblatt at the United States Bankruptcy Court for the District of Delaware, 824 North Market Street, 3rd Floor, Courtroom No. 7, Wilmington, Delaware 19801, on January 16, 2025 at 2:00 p.m. (prevailing Eastern Time) (the “Sale Hearing”).
“At the Sale Hearing, the Debtors will seek the Court’s approval of the Winning Bid for the applicable Assets. Unless the Court orders otherwise, the Sale Hearing will be an evidentiary hearing on matters relating to the sale(s) for the applicable Assets, and there will be no further bidding at the Sale Hearing. PThe document states that the bidding orders procedure in the case had set a bidding deadline of Jan. 10, 2025, at 11:59 p.m. EST.
For the second time in a six-year period, ATD filed Chapter 11 proceedings in the U.S. Bankruptcy Court for the District of Delaware this past October.
