As most of you know, Accuride Corp has filed Chapter 11 bankruptcy and has started the restructuring process. The Local 718 Bargaining Committee met with the Company on Thursday, October 10, 2024 to go over the details of the bankruptcy and the future of the Gunite Rockford facility. Accuride will be moving forward without the wheel end business meaning Gunite will no longer be with Accuride. Gunite is currently for sale. If a sale is not completed by the deadline, Gunite will wind down operations and close the plant.

UAW Local 718 is confident that we will find a buyer and business will boom like it has in the past. We as employees control our future and the future of Gunite. Working together to better the conditions of the plant can and will speed up a successful sales process.

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Accuride Announces Debt Restructuring Agreement

• Accuride Corporation reaches agreement with its lenders to restructure its North American business  
• Restructuring will enhance operational efficiency and significantly reduce the company’s funded debt  
• To effectuate restructuring, Accuride Corporation and certain of its U.S. and Canadian affiliates (“Accuride”) filed a voluntary Chapter 11 petition under the U.S. Bankruptcy Code and commenced proceedings in Canada under the Companies’ Creditors Arrangement Act (“CCAA”), respectively  
• Restructuring expected to be completed in 90-100 days  
• All plants continue to operate “business as usual”  

Livonia, MI – October 9th, 2024 –Accuride today announced its intention to restructure its North American business. The proposed restructuring, the result of extended negotiations with its lenders, will facilitate economic improvements for operations and significantly reduce funded debt from Accuride’s balance sheet.  

  

To complete the proposed restructuring, today, certain of Accuride’s U.S. entities filed a voluntary petition for protection under Chapter 11 of the U.S. Bankruptcy Code and Accuride’s Canadian entity commenced a proceeding under the CCAA and will seek approval for a proposed plan of reorganization. Accuride’s Mexican, European, and Asian subsidiaries are not included in these filings. All plants will continue to operate “business as usual.” With this agreement, Accuride is hopeful that it will be able to emerge from bankruptcy on an expedited basis, anticipated to be 90-100 days from filing, with a confirmed plan of reorganization.  

  

To ensure that Accuride will continue conducting its business in the ordinary course without interruption, Accuride’s agreement with its lenders provides it with $30 million in Debtor-in-Possession financing, which is structured to provide sufficient liquidity to continue normal operations and meet post-petition obligations to employees, suppliers, and customers as they come due. This financing is intended to provide peace of mind to Accuride’s customers and suppliers and allow the Company to maintain or restore normal trade terms with suppliers.  

  

“Accuride’s reorganization efforts are designed to create a healthier capital structure that will allow the Company to remain a leader in the global wheel market,” said Robin Kendrick, Accuride’s President and CEO. “Accuride anticipates a quick emergence from Chapter 11, with a de-levered balance sheet and improved capital structure. I am confident this reorganization will give Accuride the financial flexibility it needs to grow its business and support its employees, customers, and suppliers.”  

 

Kirkland & Ellis is serving as legal counsel to Accuride, along with Perella Weinberg as Investment Banker and Alvarez & Marsal as restructuring advisor. 

Source: Accuride Corp & WIFR TV