Accuride: Crestview-Backed Wheel Maker Equitizes Debt in Chapter 11

Accuride Corporation and certain U.S. affiliates filed chapter 11 petitions on October 9, 2024, in the District of Delaware, pairing the U.S. filing with a parallel Canadian CCAA proceeding. The lender-supported plan equitized more than $400 million of funded debt and restructured approximately $170 million of additional obligations. The DIP financing combined new money with a roll-up of recent bridge lending provided by sponsor Crestview Partners. The plan was confirmed on February 12, 2025, and became effective on March 7, 2025.

Lender-Supported Plan Reorganization

What Accuride does and why its end markets matter in a restructuring. Accuride describes itself as a manufacturer of steel and aluminum wheels and wheel-end components for commercial vehicles, with brands that include Accuride Wheels, Gunite, and KIC. The First Day Declaration describes the company's core market as the medium to heavy-duty commercial vehicle sector, where OEM build rates and aftermarket replacement demand are tied to freight-cycle conditions and fleet utilization.

What filed (and what did not): the U.S. chapter 11 perimeter and the Canadian CCAA parallel. Accuride announced that it and certain U.S. affiliates filed chapter 11 petitions in Delaware, while its Canadian entity commenced a separate CCAA process. The company also stated that its Mexican, European, and Asian subsidiaries were not included in the U.S. filings, a structure that left non-U.S. operations outside the chapter 11 perimeter. In the first day declaration, Accuride described non-debtor operations outside the U.S. (including wheels operations in Europe and Asia) while identifying the debtor-side manufacturing and distribution footprint in North America.

Why Accuride filed: cost increases, operational issues, weak freight demand, and maturities. In contemporaneous reporting, Accuride's filing narrative centered on a combination of post-COVID cost inflation and supply-chain disruption, operational challenges (including slower-than-expected Mefro integration), and weakening demand tied to the freight recession. Reporting indicated that the company's available cash at filing was about $6 million and that it faced near-term maturity pressure, including more than $73 million maturing in October 2024. Accuride's distress story also included business-line specifics that mattered to creditors because they shaped downside scenarios. Reporting described an Ontario wheel-end plant that could not be stabilized to profitability and a dispute environment that included litigation over roughly $4 million in aluminum orders by Hydro Aluminum Metals USA LLC. Accuride also sought to exit a BrightDrop supply contract to supply wheels for GM's electric vans in Ontario, with GM reportedly unwilling to renegotiate terms.

Freight-cycle context. The freight recession that began around April 2022 lasted 13 consecutive quarters of weak freight demand, with spot-market load postings at one point down about 30% year-over-year. ATRI data showed that the average cost to operate a truck reached $2.26 per mile in 2024, adding margin pressure across fleet types.

Capital structure at filing: an ABL layer, a term loan layer, and sponsor-provided bridge funding. The Disclosure Statement describes total prepetition third-party funded debt of approximately $485.6 million as of the petition date. The filings separated the structure into an asset-based revolving facility (including a U.S. revolver, a French revolver, and letters of credit) and a term loan facility that had been amended multiple times. Contemporary reporting described total debts in the broad $500 million to $1 billion range and highlighted the maturity wall at filing.

Bridge loans as "pre-positioning": why the roll-up mattered. Crestview Partners began making bridge loans totaling about $65 million since June 2024, including nearly $18 million used to keep Accuride in good standing on its ABL facility. The first day declaration and Final DIP Order describe substantial bridge financing provided in the months leading up to the filing and then rolled into the DIP structure. The facility's headline commitment exceeded the new-money component because recent bridge debt was rolled into DIP obligations.

DIP financing: reconciling the "$30 million DIP" headline with the court-authorized facility design. Accuride publicly stated it arranged $30 million in DIP financing to support operations and postpetition obligations. The DIP Motion describes a facility structure that included both new money and a roll-up of bridge/amendment loans, with later changes reflected in the final DIP order. The $30 million figure aligned with the proposed new-money tranche; the court's authorized commitment reflected the larger combined facility including the roll-up and amendment loans.

The DIP motion described a 10.0% sale premium payable on a sale of substantially all assets or equity, but the premium could be waived in full upon an acceptable plan effective date.

The Final DIP Order granted the DIP obligations superpriority administrative expense status and described a priming-lien structure subject to a carve-out, along with waivers of section 506(c) surcharge rights and section 552(b) "equities of the case" arguments. Milestones. Accuride said it expected to complete the restructuring in about 90–100 days. The DIP motion described an accelerated milestone package that targeted plan confirmation within roughly 95 days of the petition date and plan consummation within 100 days, absent waivers or extensions.

Operations during chapter 11: "keep plants running," but with business-line and facility-level pressure points. Accuride stated that all plants would continue operating during the restructuring process. At the same time, local and union reporting around the Gunite Rockford facility (part of Accuride's wheel-end solutions business) suggested the wheel-end segment was a strategic pivot point. WIFR reported union statements indicating that the Rockford factory would close if it was not sold, and UAW Local 718 stated that Accuride planned to move forward without the wheel-end business and that Gunite was for sale, with a sale deadline referenced in communications to employees. Industry reporting also referenced the possibility that the Gunite foundry could be sold as part of the restructuring process.

Strategic alternatives and marketing: a meaningful prepetition process that still pointed to a plan. In the First Day Declaration, Accuride described a prepetition marketing process that included outreach to 51 parties, execution of 31 NDAs, and receipt of seven indications of interest for portions of the business or assets. Reporting confirmed a similar set of metrics and described a process in which seven entities signaled interest but no acceptable offer was received.

Plan mechanics: equitization, new ownership, and exit financing. Accuride announced that its confirmed plan equitized more than $400 million of funded debt and restructured about $170 million of additional obligations. On emergence, Accuride stated it received a $70 million ABL facility and $95+ million exit facility, identifying lenders including KKR, Caspian, and Guggenheim Partners as the company's new owners. The Plan Supplement describes a $95 million senior secured term loan credit facility (including $73 million of new-money loans and $22 million of takeback loans) and identifies Alter Domus (US) LLC as administrative agent.

Accuride also announced a leadership transition upon emergence, stating that Robin Kendrick retired as CEO and that Geoff Bruce was appointed interim CEO.

Treatment and recoveries: how value was allocated across the capital structure. The Disclosure Statement projects that ABL claims would be paid in full, term loan claims would receive an estimated 22.2% to 39.1% recovery range, and general unsecured claims would receive no distribution, while existing equity would be cancelled with no recovery.

Releases and exculpation: the opt-in design and why it matters. The Confirmation Order describes third-party releases as consensual based on opt-in mechanics tied to ballots and solicitation materials. The same order describes exculpation provisions with carve-outs that include criminal acts, actual fraud, willful misconduct, or gross negligence as determined by final order. Claims administration: the long tail after emergence. The Effective Date Notice included post-effective deadlines for administrative claims, rejection damages claims, and professional fee claims. The court entered an order extending the Claims Objection Deadline to March 2, 2026. Accuride later filed a Motion for Final Decree to close the chapter 11 case, describing a January 7, 2026 objection deadline and a January 21, 2026 hearing date. The final decree motion also described mechanics to wind down the claims agent engagement and to transition the claims register records as part of case closing.

2009 chapter 11 context: a prior restructuring cycle and what changed in 2024–2025. Accuride's 2024 filing arrived roughly 15 years after its Great Recession-era bankruptcy. In the earlier case, Accuride filed chapter 11 on October 8, 2009 and emerged on February 26, 2010, with valid unsecured trade creditors paid in full. The 2024–2025 case, by contrast, was structured as a lender-supported recapitalization with general unsecured creditors projected to receive no distribution in the solicitation disclosure statement.

Frequently Asked Questions

When did Accuride file for chapter 11 bankruptcy?

Accuride announced on October 9, 2024 that it and certain U.S. affiliates filed Chapter 11 Petitions in the District of Delaware. Reporting likewise described the Delaware filing as covering U.S. operations while parallel restructuring steps were taken for the Canadian entity.

Why did Accuride file for chapter 11?

Accuride's filing narrative combined cost inflation and supply-chain disruption, operational challenges including Mefro integration and loss-making operations, and a prolonged freight downcycle that pressured customer demand and vendor terms, with liquidity and maturity pressure bringing the timing forward. Reporting also described contract-level stress tied to GM's BrightDrop program in Ontario, including Accuride's effort to exit supply terms that were not renegotiated.

Did Accuride keep operating during chapter 11?

Accuride stated that all plants would continue operating during the restructuring process. Facility-level reporting and union statements suggested that the wheel-end segment (including the Gunite Rockford facility) was a focus area for potential sale or wind-down depending on the success of marketing efforts.

What happened to Accuride's debt in the restructuring?

Accuride announced that its confirmed plan equitized more than $400 million of funded debt and restructured about $170 million of additional obligations. The solicitation disclosure statement's recovery analysis projected full recovery for ABL claims and partial recovery for term loan claims, with general unsecured claims projected to receive no distribution.

Who owns Accuride after emergence from chapter 11?

Accuride stated at emergence that lenders including KKR, Caspian, and Guggenheim Partners became the company's new owners as part of the restructuring. The plan supplement also identified a post-emergence governance slate, including board members affiliated with key capital providers.

What were Accuride's DIP and exit financing arrangements?

Accuride announced that it arranged $30 million in DIP financing to support operations and postpetition obligations. In the chapter 11 docket, the final DIP order authorized a larger combined facility that included up to $37 million of new-money DIP loans plus a roll-up of recent bridge/amendment loans and additional amendment loans. On emergence, Accuride stated it received a $70 million ABL and $95+ million exit facility, and the plan supplement described a $95 million senior secured term loan credit facility.

Were Accuride's non-U.S. subsidiaries part of the chapter 11 case?

Accuride stated that its Mexican, European, and Asian subsidiaries were not included in the chapter 11 filings, and that the restructuring included a separate Canadian CCAA proceeding for its Canadian entity.

Who is the claims agent for Accuride?

Omni Agent Solutions, Inc. serves as the claims and noticing agent. The firm maintains the official claims register and distributes case notifications to creditors and parties in interest per the Claims Agent Retention Order.

Read more ElevenFlo chapter 11 case research on the ElevenFlo blog.