Wheel Pros is now a reorganized, post-effective-date company: its prepackaged Chapter 11 plan was confirmed on October 15, 2024, became effective on December 2, 2024, and terminated the DIP financing authority after completion of the case’s principal confirmation and 4 Wheel Parts sale milestones.

Wheel Pros and 26 affiliates entered Chapter 11 on September 8, 2024 through the company’s voluntary petitionDkt. 1. The filing followed a reversal in pandemic-era automotive-aftermarket demand, persistent inflation and supply-chain pressure, higher interest expense, acquisition-integration challenges, and steep increases in aluminum, freight and tariff costs. Revenue had fallen from approximately $1.5 billion in 2022 to $1.34 billion in 2023, while the debtors carried approximately $1.746 billion of funded debt. A September 2023 liability-management transaction had supplied $235 million of new FILO financing and reduced debt obligations by about $140 million, but it did not sufficiently relieve the capital structure as operating performance weakened, according to the CEO’s first-day declarationDkt. 6.

The debtors filed with a restructuring support agreement backed by approximately 74% of FILO lenders, 99% of first-lien lenders, all NewCo noteholders and 7% of legacy noteholders, placing the case on an accelerated consensual path. The proposed capital solution paired a $175 million DIP ABL facility with a $110 million superpriority term loan and contemplated eliminating approximately $1.2 billion of funded debt. Under the plan framework described in the first-day declarationDkt. 6, ABL and FILO claims were to be paid in full, first-lien lenders were to receive 85% of the reorganized equity and rights to participate in an exit term loan, and junior funded-debt holders were allocated a pro rata share of $500,000 in cash. The court confirmed the amended plan roughly five weeks after filing, and effectiveness followed after the restructuring and sale conditions were satisfied. No further near-term restructuring hearing is identified in the supplied case timeline.